Trump Administration Plans Drug Price Cuts with Pfizer Deal

President Donald Trump announced a significant initiative to reduce prescription drug prices in the United States through a deal with Pfizer, which will offer all its prescription medications at discounted "most favored nation" prices within the Medicaid program. This effort aims to align U.S. drug prices with those paid in other developed countries, addressing the issue that Americans currently pay nearly three times more for prescription drugs. The plan includes making some Pfizer drugs available for purchase through a government-operated website, TrumpRx, to bypass costly intermediaries and extend benefits to a broader range of consumers beyond Medicaid recipients. Trump also emphasized that the U.S. will no longer subsidize global pharmaceutical costs and is using tariff relief as leverage to achieve these pricing concessions. The initiative follows a May executive order targeting global price disparities and is expected to be followed by similar deals with other pharmaceutical companies. Health and Human Services Secretary Robert F. Kennedy Jr. and Pfizer CEO Albert Bourla jointly supported the announcement, highlighting a rare bipartisan and industry-government collaboration.