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PhRMA Sues Trump Over Medicare Drug Pricing Pilot
Confirmed
In Short: The MFN pilot, known as GLOBE, aims to tie Medicare drug prices to those in peer countries, but PhRMA argues it exceeds Medicare’s statutory authority.
The Pharmaceutical Research and Manufacturers of America (PhRMA) filed a lawsuit Wednesday in the U.S. District Court for the District of Columbia, challenging the Trump administration's so-called 'most-favored nation' (MFN) pilot program in Medicare Part B.
PhRMA's lawsuit comes as the Trump administration has exempted all but a few companies from the pilot in exchange for voluntary deals to charge Medicaid MFN prices, reducing the program's potential impact.
Medicare Advantage insurers are raising out-of-pocket costs for enrollees, cutting money for dental work and other benefits, and eliminating broad network plans, according to federal data released this week.
This could lead to older adults facing unexpected issues, such as finding their doctors are no longer accepted by their plans, if they do not carefully choose their 2027 Medicare Advantage plans during the annual enrollment period starting Oct. 15.
Support for Medicare for All is at its highest in at least a decade, with two-thirds of Americans favoring the expansion of the government health program, according to a new KFF poll.
The poll highlights that while support for Medicare for All is high, many people do not fully understand what it entails, indicating a need for clearer communication about the policy.
Ashley Kirzinger, director of survey methodology at KFF, noted, “When we ask people what do they want to hear from candidates in regards to healthcare, it’s a plan to bring down healthcare costs.”
Christina Starks-Clay, a voter, exemplified the sentiment, saying, “I’m like, ‘Tina, OK, you were in a position for this moment to do this.’” She had recently paid $1,000 in dental bills for her son.
To fund one-time payments to Medicare beneficiaries, the Trump administration is diverting money from the $2 billion Medicare Improvement Fund, which Congress created in 2008 to improve Medicare services.
Seniors without direct deposit will receive a check at the address they listed when they registered for Medicare.
What this adds
The lawsuit by PhRMA adds to the ongoing debate over drug pricing and the statutory limits of Medicare's authority.
The poll adds to the understanding that while support for Medicare for All is high, many people do not fully understand what it entails.
The poll also found that many people are unsure of how to define Medicare for All, indicating a need for clearer communication about the policy.
What's confirmed
- The Pharmaceutical Research and Manufacturers of America (PhRMA) filed a lawsuit Wednesday in the U.S. District Court for the District of Columbia, challenging the Trump administration's so-called 'most-favored nation' (MFN) pilot program in Medicare Part B.
- PhRMA's lawsuit comes as the Trump administration has exempted all but a few companies from the pilot in exchange for voluntary deals to charge Medicaid MFN prices, reducing the program's potential impact.
- Medicare Advantage insurers are raising out-of-pocket costs for enrollees, cutting money for dental work and other benefits, and eliminating broad network plans, according to federal data released this week.
- This could lead to older adults facing unexpected issues, such as finding their doctors are no longer accepted by their plans, if they do not carefully choose their 2027 Medicare Advantage plans during the annual enrollment period starting Oct. 15.
- Support for Medicare for All is at its highest in at least a decade, with two-thirds of Americans favoring the expansion of the government health program, according to a new KFF poll.
- The poll highlights that while support for Medicare for All is high, many people do not fully understand what it entails, indicating a need for clearer communication about the policy.
- Christina Starks-Clay, a voter, exemplified the sentiment, saying, “I’m like, ‘Tina, OK, you were in a position for this moment to do this.’” She had recently paid $1,000 in dental bills for her son.
- To fund one-time payments to Medicare beneficiaries, the Trump administration is diverting money from the $2 billion Medicare Improvement Fund, which Congress created in 2008 to improve Medicare services.
- Seniors without direct deposit will receive a check at the address they listed when they registered for Medicare.
What's still developing
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- Test your knowledge with our new weekday mini crossword WASHINGTON — The brand drug industry’s main trade group is suing the Trump administration over a pilot program tying Medicare drug prices to those in peer countries.
- To read the rest of this story subscribe to STAT+.
- Test your knowledge with our new weekday mini crossword People who have a Medicare Advantage plan — and wind up needing care and prescriptions next year — are in for a rude awakening.
- Starks-Clay’s willingness to support Medicare for All, despite not fully understanding its mechanics, underscores the public’s desire for change.
- WarpBeat previously noted that Medicare for All resonates with voters who are disenchanted with the status quo and want change.
- The one-time payments are headed to most of the nation's seniors enrolled in Medicare B, spanning all 50 states.