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US plans Medicaid most-favored-nation pricing for some drugs in all states

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President Donald Trump plans to announce on ​Friday that the administration’s Medicaid most-favored-nation drug ‌pricing model will cover all 50 states, the District of Columbia, and Puerto Rico, a White House ​official said.

The US pays more for ​prescription drugs than any other country, often ⁠nearly three times as much as other developed nations. ​Trump has repeatedly said he wants to narrow this ​gap.

His administration signed deals with 17 of the largest global drugmakers, including Pfizer, Eli Lilly and Novo ​Nordisk , starting last year.

The companies agreed to ​offer lower prices, comparable to what is paid in other ‌developed ⁠countries — referred to as “most-favored-nation” pricing.

Medicaid, funded jointly by state and federal governments, already draws steep discounts from drugmakers, mandated by existing law. ​Most people ​covered by ⁠the health program for low-income Americans pay little out of pocket ​for prescriptions.

Last month, the administration announced ​a ⁠new round of drug- pricing agreements with international pharmaceutical companies and some smaller biotechs.



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