Key facts
- The Trump administration plans to announce new drug-pricing agreements with midsize biotech companies on Monday.
- Companies will agree to provide discounts on outpatient drugs to state Medicaid programs.
- Prices states pay will align with what companies charge in foreign countries.
- Participation by state Medicaid programs is optional.
- In exchange, companies will be exempt from pilot programs forcing similar discounts in Medicare.
- Relief from tariffs is also part of some discussions.
The Trump administration is planning to announce a new round of drug-pricing agreements with several midsize biotech companies on Monday, according to people familiar with the matter. These companies will agree to provide discounts on outpatient drugs to state Medicaid programs, aligning prices with what companies charge in foreign countries. Participation by state Medicaid programs is optional. In exchange, the companies will be exempt from pilot programs forcing similar discounts in Medicare. Relief from tariffs is also part of some of the discussions.