Key takeaways

• President Trump stated during the State of the Union that addressing high drug prices is a top administration priority.  Since that time, there have been a number of developments relating to drug pricing issues.
• The Balanced Budget Act, which was signed by President Trump on February 9, contains a provision that will shrink the coverage gap in Medicare Plan D prescription drug coverage and will shift much of the cost of prescription drugs sold to patients in the coverage gap to the pharmaceutical industry.
• The President’s budget, which was released on February 12, includes a number of proposals that are designed to reduce prescription drug costs, particularly for Medicare Part D beneficiaries. However, the effect of these proposals appears limited, and it is unclear whether Congress will enact them.