Budget experts for Congress say the Trump administration’s plan to reduce out-of-pocket drug costs for Medicare beneficiaries will cost taxpayers another $177 billion from 2020-2029.
The nonpartisan Congressional Budget Office analysis released on Thursday could affect prospects for one of the administration’s centerpiece proposals to lower drug costs.
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Under the plan, drugmaker rebates now paid to insurance companies and their middlemen would instead go directly to seniors in Medicare’s Part D program when they fill prescriptions.
While that would reduce copays for many beneficiaries, CBO projected it would increase taxpayer-subsidized premiums, adding $170 billion to program costs. Medicaid spending would increase by $7 billion.
CBO concluded that drug companies are unlikely to lower list prices in response to the plan.
There was no immediate reaction from the administration.
