The rule builds on a prior 2018 attempt blocked by the Supreme Court, with a 2025 executive order prompting the current proposal after a survey of hospital drug spending.

Administration officials project average annual savings of about $800 per Medicare Part B beneficiary, totaling $1.1 billion yearly and roughly $20 billion over ten years, though outcomes depend on implementation.

The Associated Press reports the rule would be implemented in coordination with Medicare and hospital stakeholders, though specific regulatory mechanisms and timelines are not detailed.

The administration unveiled a Medicare rule aimed at stopping hospitals from marking up discounted 340B drugs for beneficiaries, projecting about $1.1 billion in annual savings next year while hospitals warn the move could cut revenue and affect patient services.

The rule would adjust reimbursements for 340B participants by capping payments and basing them on reduced drug prices, with examples like Lupron Depot illustrating the current gap between what hospitals pay and what Medicare reimburses.

The 340B program provides discounted outpatient medications to hospitals serving low-income populations and has long been a flashpoint between hospitals and manufacturers over funding and access to care.

If approved, the rule would take effect at the start of the next year, representing a renewed push to tackle drug costs amid ongoing affordability debates in an election year.

The initiative fits within the broader agenda to address affordability in healthcare and curb rising costs for families and the government.

Bloomberg Law coverage and alignment efforts are noted as the rule’s potential impact on hospital drug pricing will be explored further.

This story is part of a broader roundup of politics and policy, highlighting healthcare cost measures alongside other domestic and international developments.