Secret pharma agreements could slash projected Medicare drug-savings by up to 80%

A new analysis suggests that secretive agreements with over two dozen drug manufacturers could diminish the projected savings of the Trump administration’s effort to lower Medicare drug costs by up to 80%. The policy, known as “most-favored nation” pricing, would tie U.S. Medicare prices to the lowest rates observed in a group of 19 wealthy countries. Officials have promoted the plan as a way to save $26 billion for Medicare and curb rising prescription-drug expenses.

To implement it, the administration is developing two pilot programs—GLOBE for Medicare Part B and GUARD for Part D—that would require additional rebates from manufacturers whose prices exceed the identified international floor. Detailed rulemaking is expected soon, but the analysis warns that the hidden pharma deals could severely undercut the promised savings.