All 50 states join Medicaid international-reference drug pricing model

Reuters and the Associated Press reported that President Donald Trump announced participation by all 50 states, Washington, D.C., and Puerto Rico at the White House. Major drugmakers have agreed to offer Medicaid prices for selected products under a most-favoured-nation approach tied to prices in other high-income countries.

Medicaid is jointly financed by states and the federal government and already receives statutory drug rebates. The new model aims to reduce net costs further for selected products, including some weight-loss medicines. Any effect on an individual beneficiary's out-of-pocket cost will depend on state implementation and product-specific arrangements.

The White House Council of Economic Advisers estimated savings over ten years of about $27.6 billion for states and $36.6 billion for the federal government. Those are modelled projections, not realized savings. Reporting notes that important terms of the manufacturer agreements and price formulas have not been made public.

PhRMA opposes international reference pricing and says it may affect treatment access and investment in new medicines. N Globe treats state participation and the government announcement as confirmed, while not presenting projected savings, final patient costs or long-term effects as settled facts.