AbbVie (ABBV) and other healthcare stocks were rising in recent Thursday trading after the Trump administration reportedly proposed a new rule to curb hospital drug markups in Medicare.
According to The Associated Press, the rule targets hospitals in the 340B program, which allows them to buy outpatient drugs at reduced prices for low-income patients but often bill insurers at higher rates and keep the difference.
The move could save consumers about $1.1 billion next year, according to estimates obtained by The Associated Press.
AbbVie rose 3.1%, Johnson & Johnson (JNJ) was up 2.5%, Bristol-Myers Squibb (BMY) gained 2.8%, and Merck & Co. (MRK) rose 2.1% in the session.
The White House didn't immediately reply to' request for comment.
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