Could “Trumprx” Be a Solution for Lower Drug Prices?
President Trump has recently announced a significant agreement with Pfizer, aimed at reducing drug prices through a new federal consumer website named Trumprx, which is set to launch next year.
On average, prescription drug prices in the U.S. are around 2.78 times higher than those in 33 other wealthy countries. According to a 2024 report by the Rand Corporation, some reductions on Trumprx could potentially reach as much as 85%.
Nevertheless, this deal leaves many Americans asking critical questions: Who truly benefits from this? How many will actually see a change? And will other pharmaceutical companies join this initiative?
Who Benefits from Trumprx?
The short answer seems to be: Not many.
Details of the plan are still being finalized, and some experts in drug pricing expressed skepticism about the announcement, suggesting that it benefits only a small segment of the population.
As Alan Sager, a professor at Boston University School of Public Health, noted, “American citizens will keep paying through the nose for essential medications.” He went on to say that while a few may benefit—those able to purchase drugs not covered by insurance at reduced prices—it’s likely to only be a handful out of a thousand.
Do Insured Individuals Need Trumprx?
This website is intended for users without health insurance, as reported by NPR. As of 2023, about 92% of Americans had health insurance, according to Census data.
For most, relying on their health insurance may actually be cheaper. For instance, without insurance, a 30-day supply of Xeljanz XR, used to treat rheumatoid arthritis, can cost around $5,940, as per Drugs.com. However, the new deal might lower that price by about 40%, bringing it down to about $3,600 a month.
It’s worth noting that 96% of insurance plans cover a more basic version of Xeljanz, with co-payments ranging from $60 to $83. Pfizer, the company behind Xeljanz, hasn’t agreed to lower prices for employers, private insurance, or Medicare.
Impact on Medicaid Recipients
Pfizer has committed to reducing drug prices for Medicaid recipients, which represent about 21% of the U.S. population, or roughly 71 million low-income individuals.
Trump remarked that this could significantly impact other Medicaid costs. However, some experts point out that Medicaid already offers relatively low drug prices. As William Padula, a professor at the University of Southern California, explained, “Most drugs in the Medicaid program are already at low prices compared to the national average.”
A price drop might save government agencies rather than Medicaid recipients themselves, especially if those beneficiaries have to pay out of pocket, which is already minimal.
Which Drugs Are Included and How Much Can People Save?
Pfizer markets or distributes over 313 drugs in the U.S., including blood thinner Eliquis and COVID-19 treatment Paxlovid, with others in development. Some medications like dermatitis ointment Eucrisa and migraine nasal spray Zavz are expected to see price cuts of about 80% and 50% respectively.
However, the full list of drugs affected by this new agreement hasn’t been disclosed yet. Many highlighted during the press conference aren’t giant sellers in the market.
Additionally, Pfizer has stated that new drugs will also enter the U.S. market at lower prices as part of the agreement, including a three-year grace period from tariffs on imported drugs.
Will Other Pharmaceutical Companies Join Trumprx?
The Trump administration is reportedly in discussions with other pharmaceutical companies, though specific names have not been disclosed.
Are There Additional Benefits?
Trumprx has the potential to lower drug prices and enhance patient choices, but hospitals are already required to provide pricing information for services and drugs due to federal transparency rules implemented in 2021.
What Is the “Most Favored Nation” Pricing Model?
Trump has been vocal about wanting to cut drug prices, stating back in 2016 that he would work towards lowering them. While U.S. citizens make up about 4% of the global population, they account for a disproportionate share of drug revenues worldwide.
Trump had previously signed an executive order in 2020 aimed at establishing a “most favored nation” pricing model for Medicare drugs, designed to align U.S. drug costs with those in other developed nations. However, that initiative faced legal challenges and was blocked for procedural reasons. He has reintroduced this concept this year, directing health departments to set price targets for certain drugs.
Concerns About the Progress of Trumprx
Trumprx may follow a model seen with Novo Nordisk, which launched an online pharmacy to assist uninsured patients with access to obesity medications at a flat rate. Consumer platforms like Trumprx have the potential to bypass intermediaries like Pharmacy Benefit Managers, which manage plans for insurance companies and employers.
Experts highlight the importance of addressing increasing fees imposed by these intermediaries to lower drug costs. Concerns remain about the significant markups that still affect individuals and insurance companies even within programs aimed at providing reduced pricing.
Ultimately, as Padula argues, the expensive process of drug research and development needs consideration. There’s a chance to make the system more efficient, potentially allowing pharmaceutical companies to lower their prices.
