Trump Finalizes Medicare Rules to Lower Senior Costs
New CMS policies cut Part B drug payments and imaging rates in hospital outpatient departments to reduce what seniors pay.
Updated on Nov. 4, 2026 in Healthcare
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President Donald Trump's administration has finalized Medicare policies that lower Part B payment rates for drugs administered in 340B hospital outpatient departments. The Centers for Medicare and Medicaid Services is also setting hospital outpatient rates for routine imaging to the amounts paid in lower-cost settings.
Why it matters
Medicare overpayments had created an incentive for 340B hospitals to purchase independent clinics, and the change is intended to end those overpayments. Passing the 340B discounts along to Medicare and Medicare patients is expected to reduce out-of-pocket costs for seniors.
CMS projects seniors will save $900 on average in 2027 on 340B outpatient drug co-pays and over $1 billion next year on high-cost drugs. Projected savings on routine imaging services total $2.4 billion over 10 years, though these are agency estimates.
The players
Donald Trump
Donald Trump is the current President of the United States, whose administration finalized the Medicare policies.
Centers for Medicare and Medicaid Services
The Centers for Medicare and Medicaid Services is the federal agency that administers Medicare and issued the payment rate changes.
The details
CMS is ending Medicare overpayments for outpatient drugs and lowering Part B payment rates for drugs administered in hospital outpatient departments. Routine imaging services affected include heart ultrasounds, bone density scans, chest x-rays, chest CTs, and head/neck ultrasounds, which will no longer be paid at hospital outpatient rates when performed in hospitals instead of doctors' offices.
Timeline
Nov. 4, 2026: Daily Signal reports the Medicare policies were finalized.
2027: Average senior is projected to save $900 on 340B outpatient drug co-pays.
Next year (2027): Seniors projected to save over $1 billion on high-cost drugs.
Next decade: Seniors projected to save over $2 billion on common imaging services.
Roadmap
The finalized rules build on Medicare Part B payment rules for drugs administered in hospital outpatient departments, which have long been shaped by the 340B drug discount program. By ending overpayments that drove hospitals to acquire independent clinics, the policy shifts how outpatient drug and imaging costs are set.
Seniors receiving outpatient drugs or routine imaging in hospitals may see lower co-pays once the payment changes take effect. Patients can check with their providers about where imaging is performed, since the rates differ between hospital and doctor's office settings.
The takeaway
Medicare payment rules can shift patient costs substantially even when they operate behind the scenes. Seniors can ask providers where a routine test is done, since the setting now affects what Medicare pays.
Further reading
For more on how federal programs shape medical costs, see Healthcare coverage.
Source note: This article includes information reported by The Daily Signal.
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