Create the national formulary & negotiate drug prices

Months 0–18 for the initial formulary; continuous negotiation · National Formulary and Pricing Board; HTA InstituteDiscuss this step

Medical devices & durable medical equipment pricing

amendedYears 2–4Drugs & devices

Today

Hospitals and payers negotiate device prices; Medicare competitive bidding for some DME.

Under the plan

National reference prices for high-cost implants within hospital budgets; competitive bidding expanded for DME.

Trade-off

Lower prices; device makers' U.S. margins fall.