President Donald Trump announced new agreements with pharmaceutical manufacturers to lower prescription drug prices for state Medicaid programs, with the White House projecting $64.3 billion in taxpayer savings over the next decade.
The initiative introduces a "most-favored-nation" pricing structure where Medicaid drug costs would match the lowest prices paid by other developed nations. The Council of Economic Advisers calculated the $64.3 billion figure.
Trump said all 50 states, Washington, D.C. and Puerto Rico would participate. But on the same Friday, the Centers for Medicare and Medicaid Services reported that only 40 states and Puerto Rico had signed formal agreements. The remaining states submitted applications, with a deadline at month's end to finalize participation.
The administration said American patients currently pay up to three times more for the same drugs as patients in other developed countries. Trump framed the initiative as a "historic win" that the "political establishment did not believe were possible."
The announcement drew questions about specifics of the pharmaceutical deals. News organizations noted the White House disclosed little detail about terms of individual agreements with drug makers.
Medicaid provides health coverage primarily to low-income and disabled Americans. The drug price reductions would directly affect affordability for these populations.
