Medicaid SAVINGS: Trump Outsmarts Big Pharma

Spilled white pills from a prescription bottle on a wooden surface

President Trump boldly declares no other leader could slash drug prices like him, mocking foreign freeloaders while securing massive deals that deliver real relief to American families.

Story Highlights

Trump’s Most-Favored-Nation (MFN) pricing ties U.S. drug costs to the lowest foreign rates, ending decades of global freeloading on American innovation.
14+ pharma deals by December 2025 slash prices up to 80%, like Ozempic from $1000 to $350 monthly via TrumpRx.
Executive leverage and tariff threats force voluntary agreements without congressional gridlock, unlike Biden’s limited efforts.
U.K. pact raises foreign prices 25%; companies commit billions in U.S. investments for exemptions.
Trump’s brash style delivers billions in Medicaid savings, prioritizing patients over Big Pharma profits.

Trump Revives MFN to End Global Freeloading

President Donald J. Trump revived his Most-Favored-Nation drug pricing policy through Executive Order 14297 on May 12, 2025. This directive instructs HHS to implement MFN prices for Medicare and Medicaid, matching the lowest rates other developed nations pay. U.S. drug prices currently exceed foreign levels by three to five times due to overseas price controls that subsidize global innovation at American expense. Trump’s approach uses executive authority to correct this imbalance without relying on legislative delays.

Key Deals Secure Massive Discounts

HHS sent demand letters to 17 pharmaceutical firms on July 31, 2025, requiring MFN compliance, Medicaid extensions, and TrumpRx participation. Pfizer signed first on September 30, offering discounts, a $70 million U.S. investment, and tariff exemptions. AstraZeneca followed on October 10 with 80% reductions and $50 billion in U.S. commitments by 2030. Eli Lilly and Novo Nordisk agreed November 6 for GLP-1 drugs like Ozempic at $350 monthly on TrumpRx. These voluntary pacts cover diabetes, MS, antibiotics, and more.

December Breakthroughs and TrumpRx Impact

On December 1, 2025, Trump announced nine new MFN agreements alongside a U.K. deal raising foreign prices 25%. Total deals exceed 14, listing drugs like Januvia from $330 to $100, Mayzent from $9,987 to $1,137, and insulin at $35 monthly. TrumpRx enables direct-to-consumer access for cash payers, while Medicare and Medicaid gain GLP-1s at $245 monthly over 24 months. Thirteen states now cover these for obesity treatments, expanding access for vulnerable Americans.

Pharma companies avoid Section 232 tariffs by committing U.S. investments and guaranteeing MFN on future drugs. This shifts revenue repatriation to fairer U.S. pricing, preserving innovation incentives. Patients with chronic conditions benefit most, with short-term Medicaid savings in billions and long-term boosts to domestic R&D and manufacturing.

LOL! Trump Touts Most-Favored-Nation Drug Pricing, Says 'No Other President can Do Some of the Sh*t I'm Doing' while Mocking French President Emmanuel Macron (VIDEO) https://t.co/1ggi1BQvCy https://t.co/lSYEWrM1wH

— Jordan Ramos (@zzues1317) March 10, 2026

Contrast with Past Failures Highlights Trump’s Edge

Trump’s 2020 MFN rule faced legal blocks, but the current voluntary model evades those pitfalls. Biden’s Inflation Reduction Act negotiated select prices through Congress, covering fewer products with slower results. Trump boasts no prior president could achieve this, using tariffs and direct negotiations for broader impact. His mockery of French President Emmanuel Macron spotlights European nations free-riding on U.S.-funded breakthroughs, rallying support for America First priorities.