Pfizer to cut Medicaid prices after Trump deal

Photo of Mathurin NAPOLY / matnapo in Unsplash

In a joint announcement from the White House, former President Donald Trump revealed an agreement with the pharmaceutical company Pfizer to reduce drug prices for Medicaid, along with the launch of a new portal called TrumpRx, through which consumers can purchase drugs directly at discounted prices.

Details of the agreement

• Pfizer will agree that all of its prescription drugs sold to Medicaid will be priced under the "most favored nation" model, meaning the lowest price offered in other developed countries.
• The pharmaceutical company will invest US$$ 70 billion in research, development, and domestic production in the U.S. as part of the agreement.
• In return, Pfizer will receive a three-year tariff exemption, provided it meets the new production conditions.
• The new portal, TrumpRx.gov, will be operational around early 2026 and will allow consumers to purchase medications directly at discounts.
• Some products already mentioned for sale at TrumpRx include Eucrisa, Xeljanz, Zavzpret and others.

What advantages are there with this new agreement?

• It would reduce the financial burden on states that support Medicaid by driving prices toward lower, more controlled levels.
• Beneficiaries of the public system could access more affordable medications.
• With TrumpRx, the government promises to eliminate intermediaries in the pharmaceutical distribution chain, providing more competitive prices for the end consumer.

Doubts, criticisms and challenges

• Experts caution that the actual effects depend on the details of the agreement, many of which have not yet been made public.
• Even with discounts, some medications may still be expensive for uninsured users or those with high co-pays.
• Critics point out that, although Medicaid already offers lower prices than the general market, the radical change in national prices could have unintended consequences for the pharmaceutical industry.
• There is uncertainty about how many more pharmaceutical companies will join the model and how it will affect the global healthcare system.

The Trump-Pfizer deal would represent an ambitious and high-profile move in U.S. health policy. The promise of lower pharmaceutical costs and easier access is clearly attractive, but the key will be to see how these changes are implemented in practice and how they translate into real benefits for patients.

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Sources:

• AP News