Trump to announce all 50 states join Medicaid drug pricing model Friday

September 19, 2026 at 01:02 AM1 min

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President Donald Trump is set to announce Friday that all 50 states will join a program providing most favored nation pricing for some Medicaid drugs. The administration claims the plan will save billions, but experts say savings are unclear because deal details are not public.

Key Facts

The White House estimated in May that the drug pricing deals could save $529 billion over 10 years.
Trump signed an executive order last year instituting a 'Most Favored Nations' policy for drug prices.
Kathy Hempstead, a senior policy advisor at the Robert Wood Johnson Foundation, said no one knows what is in these deals.
JD Hayworth, a former Republican congressman and spokesperson for the Pharmaceutical Reform Alliance, called the announcement 'meaningful progress, but that progress remains incomplete.'

The Announcement

President Donald Trump is set to announce Friday that all 50 states will join the Medicaid 'GENEROUS' model. The program aims to bring net prices of selected drugs down to prices paid in certain other countries. The announcement comes as cost-of-living issues dominate voters' concerns ahead of November midterm elections.

Savings Claims

The Trump administration claims Medicaid will save billions on prescription drug costs under the plan. The White House estimated in May that the deals could save $529 billion over the next 10 years. Experts say the savings are unclear because few details of the deals have been made public. Kathy Hempstead of the Robert Wood Johnson Foundation said the lack of information creates a barrier to legislative action.

Reactions

Hempstead said it is unreasonable for Congress to codify the arrangements without knowing their contents. She added there is concern about whether prices will revert once the current administration leaves office. JD Hayworth, spokesperson for the Pharmaceutical Reform Alliance, said millions of Americans not in government healthcare still want lower drug prices.