Trump Expands MFN Pricing Agreements to State Medicaid Programs
President Donald Trump announced that his administration is extending its most-favored-nation (MFN) pricing agreements on prescription drugs to state Medicaid programs. This move will affect all 50 states, Washington D.C., and Puerto Rico.
The MFN prices were originally agreed upon by Trump with 26 pharmaceutical companies in deals made since late September 2025. These companies include Alcon, Astellas Pharma, AstraZeneca, EMD Serono, Eli Lilly, Novo Nordisk, Amgen, Bristol Myers Squibb, Boehringer Ingelheim, Genentech, Gilead Sciences, GSK, Merck, Novartis, Regeneron, Sanofi, Johnson & Johnson, AbbVie, BeOne Medicines, BridgeBio, CSL, Kyowa Kirin, Sun Pharma, Teva Pharmaceuticals, and UCB.
Under the GENEROUS Medicaid Payment Model, state Medicaid programs will receive rebates from pharmaceutical companies to ensure that the final price for expensive brand-name drugs does not exceed the MFN price. This is expected to save states billions of dollars per year, with estimates suggesting that Medicaid could save over $64 billion in a relatively short period of time, possibly reaching as high as $100 billion.
Centers for Medicare and Medicaid Services Administrator Dr. Mehmet Oz praised the move, stating 'We are rescuing state budgets with this program, Mr. President.'