President Donald Trump announced Friday that the most-favored-nation (MFN) prices on prescription drugs in deals he struck with pharmaceutical companies are officially being extended to Medicaid programs in all 50 states, Washington, DC, and Puerto Rico.
Trump announced the action in the Oval Office on Friday.
“Thank you all for being here today as we take historic action to officially extend the benefits of our most-favored-nation agreements on prescription drug prices to state Medicaid programs all across the nation,” he said.
“This will save states billions and billions of dollars per year on drugs and allow them to invest those savings in providing better health care and higher quality service for the American people,” he added.
State Medicaid programs will receive rebates from pharmaceutical companies through the GENEROUS Medicaid Payment Model, the White House said. The rebates will “ensure the final price to Medicaid does not exceed the MFN price” on expensive brand-name drugs.
Since late September 2025, Trump has reached deals with 26 pharmaceutical companies to lower prescription drug prices. He has deals with Alcon, Astellas Pharma, AstraZeneca, EMD Serono, Eli Lilly, Novo Nordisk, Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, Regeneron, Sanofi, Johnson & Johnson, AbbVie, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB.
“The Council Economic Advisers estimate that the most favored nations deals that we’re extending to states today will save Medicaid over $64 billion, and that’s over a relatively short period of time,” Trump said, adding that he thinks savings “could be $100 billion.”
“Every state will now have the ability to use those extra billions of dollars to invest in other healthcare improvements or something else,” he continued.
Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz said, “We are rescuing state budgets with this program, Mr. President.” He also stressed that all states, including ones run by Democrats, are taking the deal.
“It is such a good deal that every state realized they need to take it,” he said.
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