On Friday, President Donald Trump announced the extension of most-favored-nation (MFN) pricing on prescription drugs to Medicaid programs across all 50 states, Washington, DC, and Puerto Rico, as part of his agreements with pharmaceutical companies.
This announcement was made during an event in the Oval Office.
“I appreciate everyone being here today as we make historical strides in extending our most-favored-nation agreements on drug pricing to state Medicaid programs nationwide,” he stated.
He added, “This initiative is expected to save states significant amounts—billions each year—on medications, which can then be reinvested into enhancing healthcare services and overall quality for the American public.”
According to the White House, state Medicaid programs will obtain rebates from pharmaceutical firms through the GENEROUS Medicaid Payment Model. These rebates aim to ensure that the final costs for Medicaid won’t exceed the MFN pricing for high-cost brand-name drugs.
Since late September 2025, Trump has negotiated with 26 pharmaceutical companies to lower prescription prices. The companies involved include Alcon, Astellas Pharma, AstraZeneca, EMD Serono, Eli Lilly, Novo Nordisk, and others.
“The Council of Economic Advisers estimates that extending the most-favored-nation deals to states today could potentially save Medicaid over $64 billion in a relatively short timeframe, although I believe the total savings might reach $100 billion,” Trump remarked.
He continued, “Every state can now channel these newfound savings into healthcare enhancements or potentially other areas.”
Dr. Mehmet Oz, Administrator of the Centers for Medicare and Medicaid Services, commented, “We’re alleviating pressure on state budgets with this initiative, Mr. President.” He noted that both Democratic and Republican-led states are embracing this deal.
“It’s such a good opportunity that every state recognizes the need to seize it,” he remarked.
