ADVANCING MOST-FAVORED-NATION (MFN) PRICING IN MEDICAID: Today, President Donald J. Trump announced that all 50 States’ Medicaid programs will benefit from lower prescription drug prices under his agreements with pharmaceutical manufacturers to match the lowest prices paid by other developed nations (known as the most-favored-nation, or MFN, prices). Under the GENEROUS Medicaid Payment Model, participating pharmaceutical manufacturers will provide State Medicaid programs with rebates on expensive brand-name drugs to ensure the final price to Medicaid does not exceed the MFN price.
The model includes hundreds of individual drugs, across virtually all major drug classes, including those acutely important to Medicaid beneficiaries like oncology, diabetes care, and asthma. Due to the President’s MFN deals, Medicaid programs have already benefitted from one million free prescriptions of Eliquis, a widely used drug for heart disease. SAVING TAXPAYER DOLLARS WHILE MAINTAINING COVERAGE FOR THE MOST VULNERABLE: The Council of Economic Advisers has estimated that taxpayers will save $64. 3B over the next decade in the form of lower Medicaid drug costs for all 50 States.
As Medicaid costs are shared by both States and the Federal government, CEA estimates that $36. 6B in savings will accrue to the Federal government and $27. 6B to State governments. These savings will unlock significant capital for States to invest in other initiatives to better care for their most vulnerable residents. President Trump’s MFN agreements not only include lower prices for Medicaid, but also lower drug prices for direct-to-consumer purchases through TrumpRx.
gov , guaranteeing MFN prices on all new innovative medicines brought to market and direct lower prices for consumers in the United States. LOWERING COSTS FOR AMERICANS: President Trump’s decisive and historic actions are lowering drug prices for the American people and ending pharmaceutical companies’ practice of charging American patients up to three times more than patients in other developed…