finance
White House Projects $529 Billion in Potential Savings Over Decade From Trump-Era Drug Pricing Policy
White House economists projected $529 billion in savings over the next decade from agreements President Donald Trump reached with pharmaceutical companies. The analysis also forecasts $64.3 billion in Medicaid savings and up to $733 billion if the framework expands.
May 6, 9:50 AM·1m read1 source
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U.S. prescription drug prices could lead to savings of $529 billion over the next decade, Benzinga reported. The analysis was carried out by administration officials for the White House Council of Economic Advisers.
3 billion on Medicaid over the next decade due to Trump’s “most favored nation” policy on drug prices. The Associated Press reported the White House analysis on Tuesday. The White House analysis estimated that expanding Trump’s drug pricing framework could save up to $733 billion over a decade as more medications enter the market.
This analysis is the first comprehensive projection of a policy that is central to Trump’s appeal to voters in the upcoming midterm elections. U.S. prices to those in other high-income countries.
In early April, the Trump administration prepared to announce 100% tariffs on pharmaceutical companies that had not struck deals. The Trump administration and HHS have promoted their drug-pricing deals as major reforms and want Congress to formalize them. The details of the agreements with 17 major drugmakers remain undisclosed.
) has pushed for legislation requiring full disclosure of the agreements. Most major drugmakers have struck deals to avoid the tariffs. , AstraZeneca PLC, Novo Nordisk, and Johnson & Johnson secured three-year reprieves as part of the deal.
U.S. investment, including two new manufacturing plants. Vas Narasimhan, CEO of Novartis, which has also signed the deal, warned that Trump’s drug pricing policy could force tough trade-offs for drugmakers and patients, with major impacts expected within the next 18 months and significant long-term consequences.
