The Trump administration ’s budget proposal has been criticised by industry experts , as it does not overtly tackle lowering the price of expensive medicine . The proposal , which was put forward after a ’ two year budget agreement , lists billions of Another proposal that lowers reimbursement for Medicare Part B drugs that are new to the program is reminiscent of an Obama-era pilot that never got off the ground. expenses cuts for drugs in the federal Medicare program . Additionally , spending on medicine for Medicaid will undergo an overhaul . Though any drug price alterations will be significant due to the scale of the Medicare and Medicaid programs , the underlying issue behind drug prices will likely remain unaddressed , due to the proposal ’s plan to move money rather than force price reductions . The proposal suggest that discounts and rebates offered by pharmacy benefit managers be removed for seniors who purchase medicine through Medicare Part D , leading to lower out - of - pocket expenses . However , premiums may be raised , as insurers would miss out on discounts . It also suggested that low - income seniors that benefit from Medicare should not have to pay for generic drugs , and that out - of - pocket costs for beneficiaries passing through the “ doughnut hole ” coverage gap should be capped . Beneficiaries presently pay approximately 5 percent coinsurance in the “ catastrophic phase , but this would be reduced to zero if suggestions are followed . Drugs currently being paid for under Medicare Part B , such as chemotherapy and rheumatoid arthritis infusions , may be moved into the Part D Medicare offering to inspire price negotiations . The proposal also suggested a five - state pilot project , designed to enable state Medicaid programs to negotiate drug prices with manufacturers , and to establish their own drug formularies . Congress has just passed a spending pact that offers a large benefit to Medicare enrollees , at a cost to the pharmaceutical industry , to close the “ doughnut hole ” in 2019 . However , all the measures suggested have been criticized for being a rehash of old policies or Obama - era pilots , or policies that are already part of the rulemaking process .
The Trump administration ’s budget proposal has been criticised by industry experts , as it does not overtly tackle lowering the price of expensive medicine . The proposal , which was put forward after a ’ two year budget agreement , lists billions of expenses cuts for drugs in the federal Medicare program . Additionally , spending on medicine for Medicaid will undergo an overhaul . Though any drug price alterations will be significant due to the scale of the Medicare and Medicaid programs , the underlying issue behind drug prices will likely remain unaddressed , due to the proposal ’s plan to move money rather than force price reductions . The proposal suggest that discounts and rebates offered by pharmacy benefit managers be removed for seniors who purchase medicine through Medicare Part D , leading to lower out - of - pocket expenses . However , premiums may be raised , as insurers would miss out on discounts . It also suggested that low - income seniors that benefit from Medicare should not have to pay for generic drugs , and that out - of - pocket costs for beneficiaries passing through the “ doughnut hole ” coverage gap should be capped . Beneficiaries presently pay approximately 5 percent coinsurance in the “ catastrophic phase , but this would be reduced to zero if suggestions are followed . Drugs currently being paid for under Medicare Part B , such as chemotherapy and rheumatoid arthritis infusions , may be moved into the Part D Medicare offering to inspire price negotiations . The proposal also suggested a five - state pilot project , designed to enable state Medicaid programs to negotiate drug prices with manufacturers , and to establish their own drug formularies . Congress has just passed a spending pact that offers a large benefit to Medicare enrollees , at a cost to the pharmaceutical industry , to close the “ doughnut hole ” in 2019 . However , all the measures suggested have been criticized for being a rehash of old policies or Obama - era pilots , or policies that are already part of the rulemaking process .