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Trump's proposed 2020 budget: What does it mean for community pharmacy?

by NCPA | Mar 12, 2019

On Monday, the White House released its proposed budget for fiscal year 2020. Though it won't become law, it does help to clarify which programs the president prioritizes. The divided Congress will ultimately decide how federal dollars will be spent.

The president's proposal makes another attempt to repeal the Affordable Care Act and replace it with a Republican-backed proposal from Sens. Lindsey Graham (R-S.C.) and Bill Cassidy (R-La.). It would also: increase FDA funding for initiatives to curb the opioid epidemic; provide more oversight of the 340B program; and move coverage of some Part B drugs to Part D to reduce spending while protecting beneficiaries from increased out-of-pocket costs. The budget proposal would provide beneficiaries with more predictable annual drug expenses through the creation of a new out-of-pocket spending cap. On the Medicaid front, the proposed budget calls for block grants in Medicaid and a new demonstration authority that would allow states to test innovative approaches for Medicaid prescription drug coverage, including a proposal to allow states to negotiate prices directly with manufacturers. Additionally, the proposal eliminates the Medicaid rebate cap. Currently, there is a statutory cap on manufacturer drug rebates at 100 percent of a drug's average manufacturer price.