Note: Single-source report; awaiting corroboration.
The Trump Administration has established a Most-Favored-Nation (MFN) drug pricing policy to address disparities in drug prices and pharmaceutical innovation contributions between the U.S. and other developed nations. Voluntary pricing agreements have been reached with 17 major pharmaceutical manufacturers, with plans to extend similar agreements to most makers of sole-source brand name drugs and biologics in the country.
The policy includes a prospective MFN component, requiring manufacturers to offer all new drugs launched in the U.S. at prices comparable to those in other wealthy nations. This pricing applies across all U.S. markets, including private insurance, and is projected to generate $529 billion in domestic savings over the next decade.
For existing drugs, the MFN framework requires manufacturers to provide them to state Medicaid programs at MFN prices, which is expected to yield $64.3 billion in combined federal and state savings over 10 years.
Additionally, direct-to-consumer discounts through the TrumpRx.gov initiative will benefit patients who purchase prescription drugs outside insurance coverage. For example, users of glucagon-like peptide-1 (GLP-1) drugs for weight loss without insurance could save approximately $3,000 annually, and couples undergoing in-vitro fertilization may save over $6,000. The policy also supports Medicare coverage expansion for anti-obesity treatments by securing price reductions for GLP-1 drugs.
The administration is working with Congress to codify these agreements into law, aiming to sustain discounts and ensure that health insurers count direct-to-consumer purchases toward patients’ deductibles and out-of-pocket maximums. The MFN policy is designed to complement U.S. trade efforts by aligning drug pricing commitments with demands for fair government contributions from foreign markets.