Trump extends most-favored-nation drug pricing mandate to all state Medicaid programs
The program covers nearly 70 million Medicaid beneficiaries across every state, Washington D.C. and Puerto Rico.
Published
President Trump announced a nationwide program requiring state Medicaid programs to receive most-favored-nation drug discounts, extending pricing tied to the lowest rate paid by other wealthy nations to Medicaid coverage for close to 70 million Americans.
A White House official said the program will reach Washington D.C. and Puerto Rico in addition to all 50 states. The rollout marks a shift from the earlier version of the plan, under which states struck voluntary, drug-by-drug pricing deals with manufacturers. All 50 states are now set to move to a blanket mandate covering the entire Medicaid program rather than individual negotiated agreements.
The change builds on Trump's earlier state-level pricing announcements, moving from a negotiated framework to one set by mandate across the expanded pool of beneficiaries. Because the new program leaves drugmakers no room to negotiate terms, it is more aggressive than the earlier, narrower version and puts more direct pressure on pharmaceutical company pricing and margins.