President Trump has secured historic deals with eleven major pharmaceutical companies to slash Medicaid and Medicare drug prices using “most-favored-nation” pricing that ties U.S. costs to the lowest prices charged in other developed countries.
Story Highlights
- Nine major drugmakers agree to cut Medicaid prices to match lowest foreign rates
- Diabetes drugs like Ozempic drop from $1,000+ to $245 monthly for Medicare/Medicaid
- Bristol Myers Squibb will provide blood thinner Eliquis free to Medicaid programs
- TrumpRx platform launches in 2026 offering direct manufacturer discounts up to 50%
Trump Delivers on Drug Pricing Promise
President Trump announced breakthrough agreements with Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, and Sanofi to implement most-favored-nation pricing across U.S. public programs. These deals represent the largest pharmaceutical pricing reform in decades, directly challenging an industry that has exploited American patients with inflated costs while offering steep discounts overseas.
The agreements stem from Trump’s May 12, 2025 executive order directing agencies to align American drug prices with peer nations, followed by July 31 letters to manufacturers demanding lowest-price guarantees. This systematic approach demonstrates how principled leadership can force corporate accountability where previous administrations failed to deliver meaningful results for working families.
Massive Savings for Government Health Programs
Eli Lilly and Novo Nordisk committed to reducing high-cost diabetes and obesity medications from over $1,000 monthly to $245 for Medicare and Medicaid patients. Popular drugs like Ozempic, Wegovy, Mounjaro, and Zepbound will become accessible to millions of seniors and low-income Americans who previously couldn’t afford life-changing treatments due to pharmaceutical greed.
Bristol Myers Squibb’s decision to provide Eliquis completely free to Medicaid programs represents unprecedented corporate concessions. This blood thinner ranks among Medicaid’s most widely prescribed medications and generates massive revenue for the company, making this donation a significant victory for taxpayers and vulnerable patients requiring anticoagulation therapy.
Economic Relief Through Smart Negotiation
State Medicaid programs will experience immediate budget relief as drug costs align with international pricing standards, freeing resources for expanded healthcare services. The most-favored-nation framework ensures American patients receive the same pricing benefits that foreign governments have long negotiated, ending decades of discriminatory pricing practices against U.S. consumers.
Companies also committed to donating active pharmaceutical ingredients for a national strategic reserve, strengthening America’s healthcare independence. The upcoming TrumpRx platform will enable direct manufacturer purchases with up to 50% discounts, bypassing middleman markups that inflate prescription costs for uninsured Americans seeking affordable medications.
Sources:
Trump announces lower drug price deals with 9 pharmaceutical companies
