President Donald Trump is focusing on drug pricing today, with his administration set to announce all 50 states will see most-favored-nation pricing for certain drugs in Medicaid programs, according to Trump administration plans shared first with Semafor.
The White House Council of Economic Advisers estimates the effort will result in $27.6 billion in net savings for state governments and $36.6 billion in federal savings over 10 years. Trump will host the governors of South Dakota, Mississippi, and Arkansas in the Oval Office to tout work on lower drug prices, which Republicans hope to turn into a winning midterms message.
Yet experts have questioned whether lower prices are entirely a result of Trump’s efforts, as well as whether the “GENEROUS” model for Medicaid payments would actually garner significant savings, due to the steep discounts for drugs that the program already receives.
“This is a clear cut example of how you can save money in the Medicaid program in a way that strengthens the program as a whole,” said a White House official granted anonymity to discuss the event. “By getting lower drug prices, more people will have access.”