Pharmaceutical Prices
Pharmaceutical Prices
WASHINGTON, DC- In a nationally televised announcement, President Donald Trump revealed a sweeping agreement with the pharmaceutical industry that promises to dramatically lower prescription drug prices for Americans, bringing them down to the lowest levels paid anywhere in the developed world.
Standing alongside senior health officials and executives from major drug manufacturers, the President said the United States will no longer pay higher prices than other countries for the same medications. Under the new policy, American patients will receive “most favored nation” pricing, meaning the cost of a drug in the U.S. will match the lowest price charged internationally.
Fourteen of the world’s 17 largest pharmaceutical companies have already agreed to the framework, with the remaining firms expected to join shortly. The agreement applies to drugs purchased through Medicaid and extends to all future medications introduced by participating companies.
The officials explained that for decades, U.S. consumers have paid significantly more for prescription drugs than patients abroad, despite representing a small fraction of the global population. Administration officials noted that Americans account for roughly 4 percent of the world’s population yet have historically generated the majority of pharmaceutical profits. The new policy aims to rebalance that system by ensuring price parity without undermining innovation.
Several examples shared during the announcement illustrated the scale of the changes. Prices for widely used treatments, ranging from blood thinners and HIV medications to therapies for hepatitis, are expected to drop sharply, in some cases by hundreds or even thousands of dollars per prescription.
Health and Human Services Secretary Robert F. Kennedy Jr. described the agreement as a long-overdue correction. “This is about fairness,” he said, adding that Americans have effectively subsidized global drug development for years. “That burden is now being shared more evenly.” Kennedy Jr. also noted that its impact resonated beyond party lines, sharing that his adult son, who often disagrees with him politically, told him he was proud of this achievement and called it one of the most meaningful actions taken for the American people.
The administration emphasized that the policy was crafted to protect medical innovation while also strengthening national security. As part of the agreements, pharmaceutical companies will invest more than $150 billion in domestic manufacturing, with new facilities planned across multiple states. The goal is to significantly increase the percentage of essential drugs produced in the United States.
In addition, several companies committed to donating large quantities of critical medications and ingredients to bolster the nation’s strategic medical reserves.
Dr. Mehmet Oz, a senior official at the Department of Health and Human Services, said the impact will be immediate and personal. “This isn’t theoretical,” he noted. “It’s about families, seniors, and working Americans who struggle every month to afford life-saving medicine.”
The administration called the announcement the most significant action on drug pricing in U.S. history, signaling a fundamental shift in how prescription medications are priced, and who ultimately pays for them.
