The White House announced Friday that all 50 states, the District of Columbia, and Puerto Rico have agreed to a new Most Favored Nation pricing arrangement for their Medicaid programs, a move officials say will unlock nearly $65 billion in drug savings over the next decade.
The program ties U.S. drug prices to the lower rates paid by other developed nations. Under agreements already reached with 26 of the world’s largest drugmakers, covering roughly 90% of the branded U.S. drug market, prices are being brought in line with those paid abroad. The White House projects these agreements will save Americans more than $600 billion overall.
The Medicaid expansion of the program covers nearly 70 million Americans enrolled in the program nationwide. Administration officials say the change amounts to real savings for low-income families, children, seniors, and disabled Americans who rely on Medicaid for prescription coverage, as well as for state taxpayers who help fund it.
The announcement comes alongside separate data showing drug prices have fallen every month this year, marking the largest annual decline in prescription drug prices in more than 60 years — the steepest drop since 1963.
Savings Showing Up on TrumpRX
The administration’s TrumpRX platform, which now lists more than 1,000 branded and generic medicines, is also being cited as evidence of lower costs reaching consumers directly.
GLP-1 drugs, which had run more than $1,000 a month, are now listed starting as low as $149, with eligible Medicare seniors paying just $50 a month. The administration says more than 500,000 seniors have already saved a combined $216 million through the program. Officials also point to price cuts of 50% to 90% or more on fertility drugs, inhalers, insulin, and cholesterol medications.
The changes represent one of the administration’s most significant efforts yet to address prescription drug costs, an issue that has drawn attention from lawmakers in both parties for years without a comparable nationwide agreement covering every state’s Medicaid program.
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