Trump administration agrees to rule that would fine pharma for overcharging ‘safety net’ hospitals

fter years of bickering, thousands of so-called safety-net hospitals and clinics won a significant battle over the Trump administration, which agreed to implement a rule that would penalize drug makers for overcharging for their medicines. The rule is supposed to go into effect on Jan. 1.

The rule, which had been delayed several times by the Trump administration, would fine drug makers up to $5,000 for each instance in which they “knowingly and intentionally” overcharge for their medicines. The companies must also reimburse providers for medicines that were purchased. The rule would also require drug makers to post ceiling prices on a government web site.

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