Key facts
- The Trump administration plans to implement most-favored-nation pricing for certain drugs in Medicaid programs across all 50 states.
- President Trump was scheduled to host governors from South Dakota, Mississippi, and Arkansas to discuss efforts to lower drug prices.
- The US pays significantly more for prescription drugs compared to other developed countries.
- The administration previously signed deals with 17 large global drugmakers for lower prices.
- Medicaid already receives steep discounts from drugmakers due to existing law.
The Trump administration is reportedly planning to implement most-favored-nation pricing for certain drugs within Medicaid programs in all 50 states, according to a Semafor report. President Trump was expected to announce the initiative on Friday, with plans to host governors from South Dakota, Mississippi, and Arkansas in the Oval Office to highlight efforts to reduce drug costs.
The United States pays more for prescription drugs than any other country, often nearly three times as much as other developed nations. Trump has consistently aimed to narrow this gap. His administration had previously entered into agreements with 17 major global pharmaceutical companies, including Pfizer, Eli Lilly, and Novo Nordisk, to offer lower prices comparable to those in other developed countries, a practice referred to as "most-favored-nation" pricing.
Medicaid, which is jointly funded by state and federal governments, already benefits from significant discounts from drugmakers mandated by law, ensuring most beneficiaries pay little out-of-pocket for prescriptions. The administration had also announced a new round of drug-pricing agreements with international pharmaceutical companies and smaller biotechs in the preceding month.