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Trump Administration to Extend “Most-Favored-Nation” Drug Pricing to Medicaid Nationwide
By Drooid · · How we work
Planned Nationwide MFN Pricing Announcement
The Trump administration is scheduled to announce on Friday, September 18 that all 50 states will receive “most-favored-nation” (MFN) pricing for a selected group of prescription drugs covered by Medicaid programs. The announcement, reported by Semafor and cited by U.S. News, would apply the pricing model—already used in separate agreements—to every state’s Medicaid formulary.
Background and Prior Agreements
Since last year, the administration has negotiated MFN pricing deals with 17 of the world’s largest pharmaceutical companies, including Pfizer, Eli Lilly and Novo Nordisk. Under those agreements, the companies committed to offering U.S. Medicaid prices comparable to what they receive in other developed nations. Medicaid already benefits from steep statutory discounts, and most beneficiaries pay little out-of-pocket for prescriptions.
Expected Impact on Drug Costs
U.S. data indicate the nation pays more for prescription drugs than any other country, often nearly three times as much as other developed economies. Extending MFN pricing to all states could narrow that gap by aligning Medicaid reimbursement with international benchmarks, potentially lowering overall drug expenditures for state and federal budgets.
Official Responses and Verification Status
The White House and the U.S. Department of Health and Human Services have not responded to requests for comment. Reuters noted it could not immediately verify the Semafor report, and no direct statements from administration officials were available at the time of reporting.
Next Steps
If the planned announcement proceeds as scheduled, the MFN pricing framework will be incorporated into Medicaid contracts for the identified drugs. Further details on the specific drug categories, implementation timeline, and any required legislative actions were not disclosed in the available sources.