President Trump announced that all 50 states' Medicaid programs will benefit from lower prescription drug prices under agreements with 26 pharmaceutical manufacturers to match the lowest prices paid by other developed nations. The manufacturers, covering 90% of the branded U.S. market, have agreed to the Most Favored Nation pricing model.
Official data confirms the largest annual decline in prescription drug prices in more than 60 years, with prices falling every month of 2026, according to the administration. The agreements are projected to save Americans more than $600 billion over the next decade. All 50 states, Washington D.C., and Puerto Rico are participating, unlocking nearly $65 billion in Medicaid drug savings over the next decade.
Specific drugs have seen steep price reductions. GLP-1 drugs that once cost over $1,000 a month now start as low as $149; eligible Medicare seniors pay $50 a month, with more than 500,000 seniors having already saved $216 million, the administration said. Fertility drugs, inhalers, insulin, cholesterol treatments, and other high-cost medications have been reduced 50 to 90% or more.
The 26 companies include Pfizer, Eli Lilly, Johnson & Johnson, AbbVie, Merck, Novartis, Bristol Myers Squibb, Amgen, and others. The administration said these manufacturers have also committed about $170 billion to U.S. manufacturing and research and development, and are stocking the Strategic Active Pharmaceutical Ingredients Reserve to reduce America's dependence on foreign supply chains.