The Trump administration plans to extend most‑favored‑nation (MFN) pricing for certain drugs to Medicaid programs in all 50 states, Semafor reported. President Trump is expected to meet governors from South Dakota, Mississippi and Arkansas to highlight efforts to lower prescription costs. The move builds on deals with 17 major drugmakers, including Pfizer, Eli Lilly and Novo Nordisk, aimed at matching prices paid in other developed countries. Reuters had not independently verified the report.
Administration to Apply Most‑Favored‑Nation Drug Pricing to Medicaid in All 50 States, Semafor Reports
U.S. dollar banknote and medicines are seen in this illustration taken, June 27, 2024. REUTERS/Dado Ruvic/Illustration
Sept 18 (Reuters) - The Trump administration plans to extend "most‑favored‑nation" (MFN) pricing for certain prescription drugs to Medicaid programs across all 50 states, Semafor reported, citing administration plans.
According to Semafor, President Trump is scheduled to host the governors of South Dakota, Mississippi and Arkansas in the Oval Office to highlight the administration's work on lowering drug prices. Reuters could not immediately verify the report, and the White House and the U.S. Department of Health and Human Services did not immediately respond to requests for comment.
What Is Most‑Favored‑Nation Pricing?
Most‑favored‑nation pricing refers to arrangements in which manufacturers agree to offer prices for U.S. purchasers that are comparable to the lowest prices they charge in other developed countries. The administration began negotiating such deals last year with a group of large global drugmakers.
Beginning last year, the administration struck agreements with 17 of the world’s largest drugmakers, including Pfizer, Eli Lilly and Novo Nordisk. Under those arrangements, participating companies agreed to offer lower prices for certain medicines, aligned with prices paid in other developed nations.
Medicaid, which is financed jointly by state and federal governments, already receives sizeable statutory discounts from drugmakers. Most beneficiaries in the program for low‑income Americans pay little out of pocket for prescriptions. The reported plan would extend the MFN pricing approach to the Medicaid context nationwide.
Last month the administration announced another round of drug‑pricing agreements with international pharmaceutical firms and several smaller biotechnology companies, continuing its push to narrow the price gap between U.S. drug costs and those in other developed countries.
Note: The Semafor report cited administration plans; Reuters had not independently verified the announcement at the time of reporting.
(Reporting by Anusha Shah and Sriparna Roy in Bengaluru; Editing by Toby Chopra and Joyjeet Das)
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