The U.S. home-based care industry is closely watching proposed changes to pharmaceutical trade policy that could have significant downstream effects on operations and reimbursement. In July 2025, President Donald Trump proposed raising tariffs on imported pharmaceuticals by as much as 200%. While implementation may be delayed by a year or more, the financial implications for infusion and pharmacy providers could begin well before formal adoption.
Currently, roughly 80% of the active pharmaceutical ingredients (APIs) used in U.S. drugs are manufactured abroad, with many infusion therapies relying heavily on imported drugs or components. If enacted, these tariffs would increase the cost of acquiring medications, particularly specialty and biologic drugs that are already expensive to source. At the same time, reimbursement rates from payers are unlikely to adjust quickly, if at all, to account for these higher acquisition costs.
This misalignment could place a serious strain on providers’ revenue cycles. When the cost of goods sold increases but reimbursement remains static, providers face shrinking margins and heightened cash flow risk. For home-based infusion and specialty pharmacy providers, who often front the cost of high-dollar therapies before reimbursement is received, the financial exposure can be substantial.
The challenge doesn’t stop at higher costs. Payors may begin to scrutinize claims more closely, requiring stronger documentation to justify elevated pricing. Without a detailed audit trail, providers could face increased denials or underpayments, which would further compound financial strain. Timely billing, accurate coding and proactive denial management will become even more critical as the landscape evolves.
In this environment, Prochant’s AI-driven, technology-enabled revenue cycle solutions offer the precision and visibility providers need. Our platform helps identify underpayments, predict denial patterns and automate workflows that keep claims moving quickly and cleanly. Real-time analytics give providers the insight to spot reimbursement gaps early and take corrective action.
Backed by an expert team that understands the nuances of infusion and pharmacy billing, Prochant helps clients navigate complex reimbursement environments with confidence. As costs rise and payer scrutiny intensifies, having a partner that can optimize collections, support compliance and improve financial outcomes is more valuable than ever. Talk to one of our experts to learn more.
Frequently Asked Questions
1. What are pharmaceutical tariffs and how could they impact infusion and specialty pharmacy providers?
Pharmaceutical tariffs are taxes imposed on imported drugs and drug components. If enacted, proposed U.S. tariffs of up to 200% could drastically raise the cost of specialty and biologic medications used by infusion and specialty pharmacy providers—cutting into already thin margins and increasing financial risk.
2. Why are infusion therapies particularly vulnerable to pharmaceutical import tariffs?
Approximately 80% of active pharmaceutical ingredients (APIs) used in U.S. drugs are manufactured overseas. Many infusion therapies rely on these imported drugs or components, meaning any new tariffs could significantly raise acquisition costs for providers.
3. Will payers increase reimbursement to match rising drug costs caused by tariffs?
It’s unlikely that payer reimbursement rates will adjust quickly, if at all, in response to tariff-driven price increases. This misalignment could lead to shrinking margins, delayed payments, and increased denials for infusion and pharmacy providers.
4. How can infusion and pharmacy providers prepare for the financial impact of proposed pharmaceutical tariffs?
Providers can mitigate risks by strengthening their revenue cycle management strategies. This includes accurate coding, real-time denial tracking, underpayment identification, and proactive documentation to justify claims. Partnering with a tech-enabled RCM firm like Prochant can help navigate these changes.
5. What role does revenue cycle technology play in managing reimbursement risks related to drug tariffs?
AI-powered revenue cycle platforms like Prochant Pulse help providers maintain financial stability by identifying reimbursement gaps, predicting denials, and automating billing workflows. These tools provide the speed, accuracy, and visibility needed to adapt to a rapidly changing reimbursement landscape.
