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In a bid to lower drug costs, the Trump administration is allowing Medicare Part D plans to alter their formularies — or lists of medicines for which insurance coverage is provided — in hopes of encouraging greater negotiation between the plans and drug makers.

Specifically, the Centers for Medicare and Medicaid Services will permit plans to include different indications, or uses, for prescription drugs. Currently, a Part D plan that places a medicine on its formulary must cover each indication that was approved by the Food and Drug Administration, even if a plan would otherwise want to cover a different medicine for that purpose.

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