WASHINGTON (dpa-AFX) - The White House says the Trump Administration's Most-Favored-Nation (MFN) drug pricing policy framework to address the major differences in drug prices and contributions to the pharmaceutical innovation enterprise across developed countries is expected to generate $529 billion in domestic savings in the next 10 years across all markets.
The Trump Administration has so far reached voluntary MFN pricing agreements with 17 of the largest pharmaceutical manufacturers in the world to lower prescription drug prices that Americans pay for some of the world's most innovative drugs, in line with the lowest prices paid by other developed nations, known as the most-favored-nation, or MFN, price.
'Moving forward, the Administration expects to reach similar agreements with most manufacturers of sole-source brand name drugs and biologics in the nation. In parallel, the Administration is working with Congress to codify those voluntary agreements into law to ensure that patients continue to benefit from price discounts. This report describes the MFN drug pricing framework and evaluates its fiscal effects,' the White House said Tuesday.
Under the voluntary MFN framework, manufacturers will offer all new drugs launched in the U.S. at prices comparable to those in other high-income countries. This applies across all markets in the U.S., inclusive of the private insurance market. By tying U.S. drug prices to international prices, prospective MFN will lower U.S. prices and put upward pressure on prices paid in other wealthy nations.
The voluntary MFN framework requires manufacturers to make existing drugs available to state Medicaid programs at MFN prices, which would generate $64.3B in federal and state savings in the next 10 years. Discounted prices offered in the direct-to-consumer channel, TrumpRx.gov, will generate large patient savings for prescription drugs commonly purchased outside of insurance, including glucagon-like peptide-1 (GLP-1) drugs for weight loss and fertility medications. Specifically, GLP-1 users without insurance coverage are expected to save $3,000 per year, and couples undergoing in-vitro fertilization are anticipated to realize savings exceeding $6,000.
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