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President Trump just landed the first most-favored-nation pricing deal with Pfizer, meaning Pfizer will no longer charge Americans the highest price for prescription meds.
This is significant because the first Trump administration tried to secure a most-favored nation policy for prescription drugs but big pharma sued to stop it. Instead of fighting him this time, Pfizer played nice and gave in.
This was part of the White House and RFK Jr.’s plan to reduce prescription drug prices by up to 80% using what they call MFN or most-favored-nation price, meaning that Americans should get the lowest cost of prescription medications instead of the highest, which is what they usually pay.
Tuesday’s announcement applies to Medicaid and directly to consumers on a new website, TrumpRx.gov, set to launch next year. This means that if prescription plans can’t get low prices, consumers can buy their prescriptions at discounts directly. Pfizer says discounts could be between 50 and 85% of current prices.
It’s a clever workaround but it also raises huge questions: which drugs will actually be available through TrumpRx.gov? Will it only cover Medicaid-discounted medicines or expand into the wider market? And what happens if insurers retaliate by limiting coverage or steering patients elsewhere?