Trump, nine drugmakers strike Medicaid and TrumpRx pricing deal
President Trump and nine major drugmakers struck a deal under which the companies agreed to limit what the U.S. government — including state Medicaid programs — will pay for many drugs to prices charged in other wealthy countries, joining 14 firms now covered by the administration’s most‑favored‑nation pricing arrangements and pledging at least $150 billion in U.S. manufacturing investment. The agreement also creates a government‑linked direct‑to‑consumer channel, TrumpRx.com, launching in early 2026 to route buyers to manufacturers’ fulfillment sites (with examples like Merck’s Januvia falling roughly from $330 to $100 and Amgen’s Repatha from $573 to $239), gives companies a three‑year exemption from possible tariffs, and leaves open questions about how much consumers will actually save versus existing insurance copays and Medicaid pricing as Trump said he may press insurers to lower prices.
📌 Key Facts
- The White House announced deals with nine pharmaceutical companies, bringing the total number of firms with most-favored-nation pricing agreements with the administration to 14.
- Under the agreements, the U.S. government will limit what it pays for new drugs to prices paid in other wealthy countries, and state Medicaid programs will be explicitly able to access those lower prices; companies are described as having agreed to cut prices on many drugs they sell to Medicaid.
- Participating drugmakers committed to at least $150 billion in required U.S. manufacturing investments.
- The administration will launch TrumpRx in early 2026 — a government site that routes users to drugmakers’ direct‑to‑consumer fulfillment sites so the same companies will sell certain drugs directly to consumers through the platform.
- TrumpRx price examples provided by the administration include Merck’s Januvia dropping from about $330 to $100 and Amgen’s Repatha from $573 to $239 for patients paying directly via TrumpRx.
- In exchange for the pricing and other commitments, the companies receive a three‑year exemption from possible administration tariffs.
- Officials and reporting note uncertainty over how much consumers will actually save compared with existing insurance copays and Medicaid pricing.
- President Trump said he will call a meeting of insurers to push them to lower prices as a potential next step.
📊 Relevant Data
In 2022, the age-standardized prevalence of diabetes among US adults was 12.1%, with rates varying by race/ethnicity: 13.6% for American Indian/Alaska Native, 12.1% for non-Hispanic Black, 11.7% for Hispanic, 9.1% for Asian, and 6.9% for non-Hispanic White adults.
Diabetes in America: Prevalence, Statistics, and Economic Impact — American Diabetes Association
From 2019 to 2024, the prevalence of high total cholesterol (240 mg/dL or higher) among US adults varied by race/ethnicity: approximately 11% for non-Hispanic White, 9% for non-Hispanic Black, 10% for Hispanic, and 8% for Asian adults.
High cholesterol among adults in the U.S. 2019-2024, by race/ethnicity — Statista
In 2022, 18% of US adults reported not filling a prescription due to cost, with higher rates among those with lower income and certain racial/ethnic groups, such as 25% among Hispanic adults and 22% among Black adults compared to 15% among White adults.
High BMI is identified as the biggest contributor to the increase in diabetes prevalence in the US, with a 321% increase attributed to it from 1990 to 2021, and disparities persist across racial and ethnic groups.
Racial disparities in high cholesterol and cardiovascular disease are influenced by factors such as dietary habits, obesity, and physical inactivity, with Black adults showing higher rates of related conditions despite slightly lower cholesterol levels.
Understanding Cholesterol Disparities in The Black Community — Issuu - Congressional Black Caucus Foundation
📰 Sources (3)
- PBS characterizes the companies as having 'agreed to cut prices on many drugs they sell to Medicaid,' reinforcing that the agreement involves broad price reductions rather than only select products.
- The segment reiterates that the same companies will also sell drugs directly to consumers through the TrumpRx website, consistent with earlier reporting.
- Confirms the list of nine participating companies and that 14 firms total now have most-favored-nation pricing deals with the administration.
- Specifies that the agreements limit what the U.S. government will pay for new drugs to prices paid in other wealthy countries, with state Medicaid programs explicitly able to access those lower prices.
- Details at least $150 billion in required U.S. manufacturing investments by the participating drugmakers.
- Provides concrete TrumpRx.com examples: Merck’s Januvia dropping from about $330 to $100 and Amgen’s Repatha from $573 to $239 for patients paying directly via TrumpRx.
- Clarifies that TrumpRx will launch in early 2026 as a government site that routes users to drugmakers’ own direct‑to‑consumer sites for fulfillment.
- Reiterates that in exchange the companies receive a three‑year exemption from possible administration tariffs and notes uncertainty over how much consumers actually save versus existing insurance copays and Medicaid pricing.
- Includes Trump’s comment that he will call a meeting of insurers to push them to lower prices as a potential next step.