Story perspectives

Trump Proposal Could Cut Medicare Drug Costs 16%

By Drooid · Sep 14, 2026, 2:02 PM UTC · How we work

Summary

Story summary

U.S. President Donald Trump’s administration proposes Most-Favoured-Nation pricing that could cut Medicare drug costs 16% in hospitals, 18% in pharmacies.
A Lancet study of 138 medicines estimates savings averaging 3.8 times reference-country annual sales.
The study finds 73% (101 of 138) would save more than reference-country sales.
Manufacturers might raise overseas prices or delay launches, risking a 71% reduction in projected savings if 17 firms receive exemptions.

History

Historical Context

President George W. Bush signed the 2003 Medicare Modernization Act, which barred Medicare from negotiating drug prices. The ban persisted until the 2022 Inflation Reduction Act lifted it, permitting negotiations starting in 2026. The Trump administration’s Most-Favored-Nation proposal now seeks to use foreign pricing to cut Medicare drug costs, echoing the original prohibition.

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Story summary

U.S. President Donald Trump’s administration proposes Most-Favoured-Nation pricing that could cut Medicare drug costs 16% in hospitals, 18% in pharmacies.
A Lancet study of 138 medicines estimates savings averaging 3.8 times reference-country annual sales.
The study finds 73% (101 of 138) would save more than reference-country sales.
Manufacturers might raise overseas prices or delay launches, risking a 71% reduction in projected savings if 17 firms receive exemptions.

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