Skip to Main Content

WASHINGTON — The Biden administration wants to rein in fees charged in Medicare by controversial middlemen that play a crucial behind-the-scenes role in the pharmaceutical pricing system.

It would be a huge win for pharmacies, which have been lobbying in Washington for the change for years. The proposal would also lower out-of-pocket costs for some Medicare patients, but not all, as plans would likely raise premiums to compensate. The Centers for Medicare and Medicaid Services said the agency expects “more than half” of traditional Medicare patients would see lower total costs.


Pharmacies, particularly independent ones, have complained for years that retroactive fees lack transparency and sometimes result in Medicare plans reimbursing them less than what they pay for drugs.

Unlock this article by subscribing to STAT+ and enjoy your first 30 days free!


Create a display name to comment

This name will appear with your comment

There was an error saving your display name. Please check and try again.