President Trump Announces Nationwide Medicaid Drug Pricing Program
President Trump announced that all 50 U.S. states will participate in a program to implement "Most Favored Nation" pricing for certain drugs within the Medicaid program, aiming to reduce their cost.
Greenville New Bern Washington, NC, September 18, 2026 —
President Trump has announced that all 50 U.S. states are set to participate in a new initiative designed to lower the cost of certain prescription drugs for recipients of the Medicaid program. The program will implement a “Most Favored Nation” pricing model.
The objective of this policy is to align the prices paid for drugs in the United States with the lowest prices paid in other developed nations. The expansion to all 50 states signifies a broad federal effort to influence drug pricing through the significant purchasing power of the Medicaid program.
Details regarding the specific types of drugs that will be subject to Most Favored Nation pricing, the precise mechanisms for price calculation, and the projected timeline for full implementation across all states were not immediately provided. The contractor responsible for administering or overseeing this program was also not specified in the announcement.
The Most Favored Nation (MFN) concept typically involves a clause where a seller agrees to offer a buyer terms (such as price) that are at least as favorable as those offered to any other buyer. In this context, the U.S. government, through Medicaid, would aim to secure drug prices that are no higher than the lowest prices available in other comparator countries.
This initiative marks a significant policy push aimed at addressing concerns over high prescription drug expenses within the U.S. healthcare system. The participation of all 50 states is intended to create a unified approach to drug procurement and pricing under the Medicaid program.
Story summarized from the original created by FATIMA HUSSEIN, Associated Press on www.wnct.com, see more information here.
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