The Trump administration is set to announce on Monday agreements with mid-sized biotechnology companies to reduce outpatient drug prices for state Medicaid programs, according to a report by Bloomberg cited by U.S. media.
Under the proposed deals, participating companies will offer discounts on prescription drugs to state Medicaid programs, with prices aligned to those charged in other countries. Participation in the state programs remains voluntary for the biotech firms. In exchange, the companies would be exempt from pilot programs that impose similar discount requirements on Medicare, a senior administration official said.
Negotiations also include potential tariff relief for some biotechnology firms, though specific terms and the scope of relief were not disclosed. The agreements are part of broader efforts to implement most-favored-nation pricing policies, which aim to tie U.S. drug costs to lower international benchmarks.
White House spokesperson Kush Desai stated that the Trump administration is making "significant progress" in negotiations for additional most-favored-nation agreements to lower drug costs for American patients. Desai emphasized that any agreements or announcements should be considered speculative until formally confirmed by the administration.
The initiative targets outpatient medications, though the financial impact on federal spending or out-of-pocket costs for low-income and disabled Medicaid beneficiaries remains unclear. Medicaid already secures substantial discounts from drug manufacturers, and beneficiaries typically pay minimal amounts for prescriptions under the program.
The announcement is expected to follow a weekend of closed-door discussions between administration officials and representatives from the biotechnology sector. Further details, including the number of companies participating and the estimated savings, are expected to be revealed during the official unveiling on Monday.
The move reflects ongoing efforts to address drug pricing disparities between the U.S. and other developed nations, though critics have questioned the feasibility and scope of such most-favored-nation policies.
