Trump Announces Most-Favored-Nation Drug Pricing Extended Nationwide.

President Trump announced Friday that all 50 states will receive most-favored-nation drug pricing for certain Medicaid drugs. The administration says it negotiated the prices with 26 pharmaceutical companies, including Pfizer, Eli Lilly, and Novo Nordisk.

• $27.6 billion in projected net savings for states over 10 years, per White House estimates.
• $36.6 billion in projected federal savings over 10 years, the White House Council of Economic Advisers says.
• $529 billion in total savings projected by the White House across all MFN deals.
• Medicaid covered roughly 74 million people; the federal government spent $668 billion on it in fiscal 2025.

Why it matters: Lower prices would most directly benefit state budgets rather than patients, who already pay only nominal co-payments under Medicaid.

• The announcement lands as healthcare costs and drug prices are central issues ahead of November midterm elections.
• Republicans reduced federal Medicaid spending by $1 trillion over a decade in the One Big Beautiful Bill Act last summer.

How 26 sources split on this story

Where they split: The core dispute is whether the claimed savings are real: the deal terms are not public, making independent verification impossible.

What’s next: Kathy Hempstead of the Robert Wood Johnson Foundation says the White House wants Congress to codify the MFN deals.

• Hempstead warns that without public deal details, Congress has no clear basis for action.
• Questions remain about whether price cuts will persist after the current administration ends.
• What are the specific terms of the 26 pharmaceutical deals, and which drugs are covered?
• Will prices revert if a future administration does not continue the MFN program?
• How much of the projected savings reflects existing Medicaid discount mandates versus the new deals?