Following a number of drug pricing reforms implemented or proposed in 2018, 2019 likely will bring more action from HHS and Congress to reduce drug prices.

Key Points:

..In 2018, the Administration implemented and proposed several policy changes to reduce drug prices or spending, and Congress passed new legislation prohibiting health plans from preventing pharmacies from informing plan enrollees about lower-cost drugs.

..The most aggressive Administration proposal is the International Price Index (IPI) Model, a mandatory demonstration model that, if implemented, would apply to roughly half of all Medicare Part B drug expenditures and would reduce reimbursement for certain drugs to align with a composite price calculated from prices paid in other international markets.

..Additional and potentially significant new policy developments are likely in 2019. The Administration seeks to finalize proposals made in late 2018 and announce new policy changes, while new congressional leadership focuses on drug pricing ahead of the 2020 presidential election.