Trump Outlines New Plan to Lower Medicare Drug Prices, End 'Rigged' System

President Trump has detailed a plan allowing Medicare to start negotiating drug prices to bring costs in line for its Part B coverage with what other countries pay for the same drugs, reports CNBC . The proposal authorizes the Department of Health and Human Services (HHS) to permit Medicare to create a new payment model meeting this mandate. Earlier, HHS Secretary Alex Azar disclosed a report that the U.S. pays 1.8 times more for the exact same medication as other nations. "The United States will finally be able to confront one of the most unfair practices ... that drives up the cost of medicine," Trump stated. "For decades other countries have rigged the system so that American consumers are charged much more, and in some cases much, much more for the exact same drug." Medicare reimburses the list price of the drug plus 6 percent, so capping price increases could help reduce the program's costs. Centers for Medicare and Medicaid Services data estimates that total Medicare drug spending reached $162 billion in 2015.