Trump announces deal with drugmakers to reduce drug prices
President Donald Trump announced a deal with the nine largest drugmakers to reduce drug prices.
President Donald Trump announced that Medicaid plans in all 50 states will have access to “most favored nation” pricing on some prescription drugs, part of his administration’s effort to lower U.S. drug prices to levels paid by other countries.
Trump said Medicaid programs in 50 states, Washington, D.C., and Puerto Rico will have access to “most favored nation” drug prices on par with what other countries pay for prescription drugs. The White House said the lower drug prices would lead to nearly $65 billion in Medicaid drug savings over the next decade.
“We’re launching this program with the participation of all 50 states, red and blue,” Trump said in an Oval Office announcement, accompanied by governors of Arkansas, Mississippi and South Dakota, on Sept. 18.
Under the Medicaid drug discount program, dubbed GENEROUS, participating drug companies will provide rebates to state Medicaid programs on brand name drugs. The rebates will ensure the final price doesn’t exceed most favored nation prices, the White House said in a fact sheet.
The Medicaid drug discounts will involve hundreds of drugs “across virtually all major drug classes,” including medications to treat cancer, diabetes and asthma, according to the fact sheet.
The White House did not immediately release details on which drugs will be included and final prices after rebates are applied.
Trump has made a series of announcements on pricing deals with drug manufacturers over the past year that he said would reduce pharmaceutical prices as well as prescription drugs listed on his direct-to-consumer website, TrumpRx.gov.
Trump announced the first drug-pricing pact with Pfizer on Sept. 30, 2025, and followed up with deals with another 16 drug manufacturers. In 2025, the Trump administration sent letters to those 17 pharmaceutical companies seeking price concessions on brand-name drugs in lieu of tariffs.
On Aug. 31, Trump announced deals with an additional nine pharmaceutical manufacturers, bringing to 26 the total number of pricing deals the administration has negotiated. Last month, Alcon, Astellas Pharma, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals and UCB signed voluntary pacts to lower drug prices. With the deals in place, the Trump administration said it has negotiated deals to lower prices for nearly 90% of brand-name drugs.
While Trump has touted these deals as cost-saving moves for consumers during Oval Office announcements, the administration hasn’t publicly released terms of the voluntary agreements.
The administration’s drug-pricing website, TrumpRx.gov, lists prices on dozens of brand-name fertility, insulin, weight loss and other medications. The website directs cash-paying consumers to drug manufacturers’ websites or coupons that can be used at pharmacies. The site does not process insurance claims, and most people use their health insurance plan’s drug benefits when filling prescriptions.