Trump Administration's Pharma Deals Could Slash Medicare Savings
By Editor • September 13, 2026 • 1 min read
A recent analysis reveals that the anticipated savings from a Trump-era initiative aimed at reducing Medicare drug costs could be significantly compromised. Estimates suggest that these savings might be slashed by as much as 80% due to undisclosed agreements made with over 24 pharmaceutical companies.
The plan in question involves a pricing strategy dubbed "most-favored nation" pricing, which would align Medicare's drug costs with prices paid in 19 affluent countries. The administration has touted this effort as a potential $26 billion saving over several years, addressing the escalating issue of high prescription drug costs.
To implement this pricing model, the White House is set to launch two pilot programs: GLOBE for Medicare Part B and GUARD for Medicare Part D. These programs would require pharmaceutical companies to provide additional rebates if their prices surpass the lowest rates established in the 19 countries. Further details on the implementation of these rules are expected to be announced soon.
Source: www.statnews.com
#drug pricing #Medicare #most-favored nation #pharmaceuticals #Trump administration
