President Trump recently announced a deal with five pharmaceutical companies to cut prices for weight-loss drugs, claiming that Americans would pay the lowest price anywhere in the world. However, a research firm has found that state Medicaid programs may already be receiving lower prices for these medications.
The main feature of the deals struck with Pfizer, AstraZeneca, EMD Serono, Novo Nordisk, and Eli Lilly is most-favored nation pricing. These companies have agreed to sell their drugs to Medicaid at prices similar to what they charge other countries. Despite Trump’s assertion that most-favored nation prices are the lowest among comparable countries, this may not be the case.
According to the research firm, Medicaid programs in various states may already be securing better prices for weight-loss drugs than what the administration has negotiated with the pharmaceutical companies. This raises questions about the effectiveness of the deals and whether they truly deliver on the promise of lowering drug prices for Americans.
The discrepancy in pricing highlights the complexity of drug pricing negotiations and the challenges of ensuring affordability for patients. As the administration continues to pursue strategies to reduce drug costs, it will be essential to closely monitor the impact of these deals on Medicaid programs and other payers.
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