The White House officially announced an agreement with Pfizer Inc. to reduce prescription drug costs for Medicaid, a significant move aiming to push to rein in high US drug prices.
President Donald Trump and Pfizer CEO Albert Bourla announced the deal, which guarantees “most-favored-nation pricing.”
Medicaid will now pay the similar lowest price Pfizer offers in other developed nations, including for the latest drugs.
Trump has exerted pressure on Danish drug manufacturers for months, mentioning US brand-name drug prices are usually triple those abroad.
The agreement fulfills a May executive order demanding voluntary price reductions or latest payment restrictions.
Additionally, Pfizer agreed to join “TrumpRx,” a planned website where uninsured Americans could buy certain drugs directly at about a 50% discount.
Bourla stated that the deal assists in reversing an unfair system.
Experts cautioned about the impact that may be limited. Stacie Dusetzina, a drug pricing expert at Vanderbilt University, stated that the amount which Medicaid will save remains unclear.
While Medicaid patients are already experiencing low co-pays, states are likely to see budget relief. Uninsured individuals, however, may get expensive prices.
Reduced prices could be effective in 2026. Alongside pricing concessions, Pfizer has pledged $70 billion for US research, development, and capital projects.
