Several drug companies have agreed to lower their drug prices through 'Most Favored Nation' deals with the Trump administration, following initial hesitation from pharmaceutical executives after President Trump called for voluntary price cuts in May.
President Trump announced new 'Most Favored Nation' drug pricing deals with nine pharmaceutical companies to lower drug costs and plans to meet with insurers to address rising health insurance premiums, amid skepticism about the impact of these measures.
The Trump administration's CMS is launching a five-year pilot in 2026 to link Medicaid drug prices to lower international prices through a 'Most Favored Nation' model, allowing participating states to negotiate lower prices for certain drugs, amid ongoing debates about its impact on drug costs and rebates.
President Trump claims to have reduced drug prices by up to 1,500%, but experts say such reductions are mathematically impossible. His efforts focus on aligning US drug prices with those in peer countries through voluntary agreements and potential government enforcement, alongside other initiatives like tariffs and reforming drug supply chain policies. However, significant policy changes require time and cooperation from multiple stakeholders in the healthcare system.