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Proposed HHS Budget Would Eliminate Medicare Negotiation Program Start-Up Funding

 
• By Cathy Kelly

The preliminary budget document supports legislation clawing back funds appropriated for the program.

Congress could be asked to recall a Medicare negotiation funding stream. (Shutterstock)
Key Takeaways
  • An internal and preliminary White House FY 2026 federal budget proposal would eliminate the $3bn appropriated in the Inflation Reduction Act for implementing the Medicare price negotiation program.
  • Cutting the funding could disrupt the ongoing implementation, which includes development of a complex Medicare Transaction Facilitator to effectuate the negotiated prices.
  • The potential reduction emerged after President Trump issued an Executive Order directing "improvements" to the negotiation program.

An internal and preliminary fiscal year 2026 budget proposal from the Trump Administration would eliminate the $3bn in funding appropriated by the Inflation Reduction Act for implementing programs primarily including...

It is not clear whether the policy will be retained in the final White House proposal, which is not expected until mid-May. But it could be implemented because congressional leadership...

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