White House projects billions in savings from drug pricing plan

Anabelle Colaco
07 May 2026, 01:10 GMT+10

The Trump administration said its “Most Favored Nation” drug pricing plan is expected to generate US$64.3 billion in savings for federal and state programs over the next decade
Under the voluntary framework, pharmaceutical manufacturers will be required to price new drugs in the United States at levels comparable to those in other high-income countries
The White House said the policy would apply across all U.S. markets, including private insurance, and could deliver total domestic savings of $529 billion over 10 years

WASHINGTON, D.C.: The Trump administration said its "Most Favored Nation" (MFN) drug pricing plan is expected to generate US$64.3 billion in savings for federal and state programs over the next decade.

Under the voluntary framework, pharmaceutical manufacturers will be required to price new drugs in the United States at levels comparable to those in other high-income countries.

The White House said the policy would apply across all U.S. markets, including private insurance, and could deliver total domestic savings of $529 billion over 10 years.

So far, the administration has reached voluntary MFN pricing agreements with 17 pharmaceutical companies to reduce prices for medicines covered under Medicaid and for cash-paying patients.

Officials said they expect to strike similar agreements with most manufacturers of sole-source brand-name drugs and biologics in the country going forward.

As part of the framework, the administration has also secured price reductions for GLP-1 weight-loss drugs and expanded Medicare coverage for obesity treatments.

"Taken together, the MFN framework aims to equalize drug prices through the combination of decreases in U.S. prices and increases in prices faced by other developed countries," the White House said in a statement.