Trump, Pfizer Deal to Lower Medicaid Drug Prices:

Washington, D.C. — In a significant move aimed at lowering prescription drug prices, former President Donald Trump announced on Tuesday a deal with pharmaceutical giant Pfizer to reduce costs for Medicaid patients. Speaking at the White House just hours before a possible government shutdown over health care funding, Trump described the agreement as a “massive breakthrough” that would pave the way for similar deals with other drugmakers. Under the agreement, Pfizer will offer “most-favored-nation” pricing to Medicaid, meaning it will match the lowest prices it offers in any developed country. This pricing model will also apply to new drugs the company launches. The New York-based pharmaceutical company, known for producing the COVID-19 vaccine Comirnaty and the antiviral treatment Paxlovid, also manufactures widely used drugs such as the blood thinner Eliquis and Prevnar pneumonia vaccines. “This is a huge step forward,” Trump said. “We’re finally turning the tide on unfair drug pricing.” Pfizer CEO Albert Bourla, who joined Trump for the announcement, echoed the sentiment. “We are reversing a situation that has been unfair to Americans for far too long,” Bourla said. The deal also includes Pfizer’s participation in a new online platform called TrumpRx, which will allow Americans to purchase discounted drugs directly from manufacturers. According to administration officials, many of Pfizer’s drugs will be offered at an average discount of 50% through the site. However, the savings for consumers may not be immediate. Senior officials stated that the price reductions under this deal won’t be seen until 2026. While Medicaid patients already pay very low co-pays—often just a few dollars per prescription—state governments, which help fund Medicaid, could benefit significantly from reduced pricing. Uninsured Americans and those without prescription coverage may also see some relief through TrumpRx. But health care pricing expert Stacie Dusetzina, a professor at Vanderbilt University Medical Center, remains cautious. “Selling drugs directly to consumers may help some people,” Dusetzina said, “but it’s not a comprehensive solution to high drug prices.” She added that since many details of the agreement remain confidential, it’s unclear how different Pfizer’s new pricing will be from current Medicaid costs. In addition to lowering drug prices, Pfizer has pledged a massive $70 billion investment in U.S. research, development, and manufacturing facilities over the coming years. Trump praised the move as part of his administration’s push to bring pharmaceutical production back to American soil. To pressure pharmaceutical companies into compliance, Trump said he threatened to impose tariffs—a strategy he has used in past trade negotiations. “The threat of tariffs gave us strong negotiating power,” he claimed. Still, Trump’s assertion that some drug prices would drop by “1,400 to 1,600%” drew criticism, as a reduction beyond 100% would imply drugmakers are paying patients to take medicine. Experts quickly pointed out that such numbers are mathematically impossible. Trump also revealed that letters were sent to 17 pharmaceutical companies in July, urging them to adopt similar most-favored-nation pricing for both Medicaid and direct-to-consumer sales. He reiterated his belief that high drug prices in the U.S. help subsidize cheaper prices in other countries. Meanwhile, Democrats in Congress are pushing to reverse Medicaid cuts included in a spending bill Trump signed earlier in the year. They are working to include that reversal in a broader government funding package, alongside extending tax credits for Affordable Care Act health plans. As negotiations continue on both drug pricing and government funding, Americans are watching closely—hoping that promises of cheaper medications will eventually become a reality.

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