Most-Favored-Nation Drug Pricing Now Extends to All Medicaid Programs
The Trump administration announced that all 50 state Medicaid programs can now access lower prescription drug prices negotiated under a most-favored-nation framework, with prices falling at the steepest rate in more than 60 years.
A major shift in prescription drug pricing reached all 50 states in September 2026. Prescription drug prices have now recorded their sharpest annual drop in more than 60 years with prices falling every month of 2026, and through most-favored-nation pricing, 26 of the world's largest drugmakers have agreed to bring U.S. prices in line with the lowest paid by comparable developed nations, with these agreements projected to save Americans more than $600 billion.
How This Affects You
If you're covered by Medicaid (including expansion coverage) or Medicare, you may already be seeing lower prices at the pharmacy. The government launched TrumpRx.gov in February 2026, where patients can access large discounts on many of the most popular and highest-priced medicines in the country. Since its launch, patients have saved more than $700 million on medicines, including massive discounts on popular medications used to treat obesity and infertility.
For those without insurance, the savings are substantial: Discounted prices offered in the direct-to-consumer channel, TrumpRx.gov, will generate large patient savings for prescription drugs commonly purchased outside of insurance, with GLP-1 users without coverage expected to save $3,000 per year, and couples undergoing in-vitro fertilization anticipated to realize savings exceeding $6,000.
What to Do
If you take regularly prescribed medications—especially for chronic conditions like diabetes, heart disease, or arthritis—ask your doctor or pharmacist if a lower-cost equivalent is available, or search TrumpRx.gov to compare prices. Check if your Medicaid plan formulary (drug coverage list) has been updated. For expats with visa sponsorship or green card holders on Medicaid, these lower prices apply immediately to your prescriptions.
Sources
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