Expansion of Drug Pricing Agreements
President Donald Trump announced Monday that his administration has signed agreements with nine additional pharmaceutical firms as part of an ongoing effort to lower consumer drug prices. The new agreements expand the administration's "Most Favored Nations" drug pricing program, which allows drug costs to be matched with prices outside the , bringing the total number of participating companies to 26.
"In total, these agreements are projected to save Americans more than $600 billion over a very short period of time," Mr. Trump said during an announcement at the Oval Office. He added, "With today's announcement, we now have 26 companies representing 90% of the domestic pharmaceutical market, and the other 10% are also coming in. They have no choice."
The nine new firms are midsize pharmaceutical companies, according to a White House fact sheet. They include Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB.
Background and Policy Details
In July, Mr. Trump sent letters to 17 leading pharmaceutical firms asking them to voluntarily lower their prescription drug prices. Earlier this year, the administration also launched TrumpRx, a website where Americans can get discounts on name-brand medications, including GLP-1 drugs, inhalers, and antibiotics. The prices are available at gov.
According to the White House, the companies will provide access to their drugs to every state Medicaid program in the , "resulting in billions of dollars in savings for Americans." The administration also stated that the companies have committed to spending $19.6 billion on manufacturing.
Official Statements on Impact
In an interview with The National News Desk, Administrator of the Centers for Medicare and Medicaid Services Dr. Mehmet Oz said the agreements could reduce Medicaid spending, freeing up money for states to use elsewhere.
"I want to emphasize Medicaid patients don't really pay for their pharmaceuticals. That's covered often by the Medicaid program," Oz said. "So it's actually money. It's going back to the states they were talking about when we discussed Medicaid. And that's going to allow the states to be able to use that money to improve education, pay for other medical services; a lot of opportunities could arise if we can get that right."
On the Medicare side, Oz said the "Most Favored Nations" policy allowed senior citizens to access weight-loss drugs at a lower price. "One of the most successful programs we've ever had is a program to give seniors who are eligible the GLP-1 drug," Oz said.
The deals that the companies entered into are voluntary. When asked if he would press Congress on "Most Favored Nations," Oz said that it's a "possibility."
"That's a possibility. I must say, because Wall Street rewarded these companies by increasing their value. Literally. The stock prices went up. Most companies won't have an incentive to do that, but it's possible or for other reasons. The companies may say we're not into this anymore, so we should codify. But in the meantime, at least through the end of this administration, we know we'll see continued drug drop in prices," Oz said.
Oz also said the TrumpRx website assists patients with the best prescription prices, noting there is "$700 million in savings so far." He advised patients to "just make sure the price you're paying is the best price out there."