President Trump will unveil a plan to limit prices on some costly drugs.
The plan will require Medicare Part D plans share a portion of discounts they receive from drug manufacturers with patients. It will include ways to allow the government to better negotiate with manufacturers on prices.
Rebates have become a battleground in the fight over who's to blame for high drug prices. Drugmakers accuse PBMs of profiting off higher list prices because they can negotiate bigger discounts. PBMs say it's manufacturers' fault for setting the high prices in the first place.
Trump's proposal will also seek to limit price increases that are greater than the rate of inflation for drugs covered under Medicare Part B, which covers treatments that patients need to be administered by a physician, the most expensive drugs like cancer treatments.
The administration would address "foreign freeloading," or how patients in other countries typically pay less for drugs than Americans, while U.S. companies invest in research and drug development.
