President Trump announced a new deal on Monday to cut prescription drug costs for Americans. The agreement covers 26 major pharmaceutical companies and targets the branded drug market. More than $600 billion is expected to be saved by American households across the coming decade through these agreements. The White House confirmed the move during an Oval Office event focused on healthcare costs.
Under the new "most-favored nation" rule, US prices will match the lowest rates paid by other developed nations. According to reports, this transition tackles a persistent problem in which US drug prices are almost three times higher than overseas costs. A 2024 study by Rand Corp noted that branded drug prices were more than four times higher abroad. The president stated these changes fix a system where the US was being taken advantage of.
"We were ripped off by the pharmaceutical companies, and we were ripped off more than anything by other countries throughout the world," he said. He noted that while the US consumes only 13% of all prescription drugs, companies take 75% of their profits from American consumers. The new agreements now cover 89% of the branded drug market in the country.
The updated deals include nine new manufacturers such as Pfizer, Eli Lilly, and Amgen. Per the Washington Times, these firms agreed to offer products at the lowest cost found in other developed nations. The list of companies also includes Alcon, Astellas Pharma, and Teva Pharmaceuticals. This expansion brings the total number of drugmakers in the program to 26.
Patients will see lower costs for treatments covering hemophilia, Parkinson's disease, and various forms of cancer. The Washington Times reported that the new deals also cover drugs that control seizures and fight infections. Manufacturers also agreed to extend these most-favored prices to state Medicaid programs. This move ensures that vulnerable populations receive the same pricing benefits as cash-paying customers.
The president highlighted that these discounts represent the largest reduction in drug prices in US history. "Our most favored nations' discounts represent the largest reduction in prescription drug prices in the history of our country," Trump said. He emphasized that the savings apply to direct-to-consumer purchases for those without insurance.
President Trump urged lawmakers to make these pricing deals permanent through legislation. He told Congress to act quickly after announcing the nine additional drugmaker agreements. The president expressed concern that future leaders might allow prices to rise again if the deals are not locked in. "We want to make it permanent," Mr. Trump said of the company-by-company pricing arrangements.
He argued that relying on executive agreements alone is not enough to secure long-term savings. "It's still a good idea to have it codified, to have it approved by Congress," he said. The administration believes that without congressional approval, the progress made could be lost. This step is seen as essential to protecting the $600 billion in projected savings.
The announcement builds on previous work with 17 of the world's largest drugmakers. The goal is to ensure that Americans pay no more than citizens in other wealthy nations. Per the Washington Times, the president feels he deserves credit for these historic decreases in cost.
The new pricing structure takes effect immediately for the 26 participating manufacturers. The Washington Times noted that the primary beneficiaries are uninsured Americans who pay cash for their medications. These patients can now see large discounts on the TrumpRx website. The administration plans to monitor the rollout to ensure the savings reach the intended families.
President Trump stated he could not The focus now shifts to the legislative process in Washington. Lawmakers must vote to codify the agreements to prevent any future reversal. The success of this plan depends on turning these temporary deals into lasting law.
Per reports, the agreements cover drugs for skin conditions, liver disease, and macular degeneration.