Story perspectives

Inflation Reduction Act, Medicare Deals Drive Steepest Drug Price Drop

8/18/2026

Summary

Story summary

U.S. President Donald Trump announced drug prices fell 0.8% in July and 3.1% from a year ago, the steepest drop since 1963.
White House linked the decline to “most favored nation” deals and the TrumpRx program, claiming $700 million saved.
Experts said the 2022 Inflation Reduction Act’s Medicare negotiations and generic and biosimilar competition drove most of the decline.
Labor Department’s index measures pharmacy payments from insurers, not patients’ out-of-pocket costs.

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Story summary

U.S. President Donald Trump announced drug prices fell 0.8% in July and 3.1% from a year ago, the steepest drop since 1963.
White House linked the decline to “most favored nation” deals and the TrumpRx program, claiming $700 million saved.
Experts said the 2022 Inflation Reduction Act’s Medicare negotiations and generic and biosimilar competition drove most of the decline.
Labor Department’s index measures pharmacy payments from insurers, not patients’ out-of-pocket costs.