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President Donald Trump plans to revive an effort to dramatically slash drug costs by tying the amount the government pays for some medicines to lower prices abroad, three people familiar with the matter told POLITICO. Trump early next week is expected to sign an executive order directing aides to pursue the initiative, called “most favored nation,” for a selection of drugs within the Medicare program. The idea would use the administration’s authorities to force prices down. (Traylor and Cancryn, 5/7)

House Republican leadership’s decision to step back from two pathways to major Medicaid cost savings has fueled contempt among hard line conservatives, raising questions about the future of a reconciliation package that faces a key markup next week. The proposals would’ve cut federal Medicaid spending by billions of dollars, but they could not gain enough support from a key group of more moderate GOP lawmakers. (Raman and Hellmann, 5/7)

Some Republicans lawmakers are reopening the door to look for savings in Medicaid beyond waste, fraud, and abuse — but they’re hitting roadblocks. (Payne and Wilkerson, 5/7)

Millions of people would lose health insurance coverage under various Republican options to cut Medicaid spending to pay for President Trump’s domestic policy agenda, according to an analysis the Congressional Budget Office (CBO) released Wednesday. For instance, a cap on Medicaid spending for beneficiaries in the expansion population would save $225 billion and result in 1.5 million additional people being uninsured by 2034. Limiting state provider taxes would save $668 billion but would mean an additional 3.9 million uninsured people by 2034. (Weixel, 5/7)