White House set to tout Medicaid ‘most favored nation’ drug pricing deals

President Trump on Friday is set to announce that all 50 states will see “most favored nation” (MFN) pricing for some drugs covered by Medicaid, according to an administration official.

Trump will be joined by “several governors” in the Oval Office to make the announcement, the official said.

With affordability a top concern among voters, Republicans hope to use drug pricing as a winning message in November’s midterm elections.

“Today’s announcement confirms that every state Medicaid program will save billions on prescription drug costs thanks to President Trump,” the White House official said.

The administration’s “GENEROUS” model allows participating states to purchase drugs at a price aligned with those in other countries. The theory, according to the Centers for Medicare and Medicaid Services, is that it will allow state Medicaid programs to benefit from fairer, more competitive pricing.

The administration has suggested state Medicaid programs could save more than $64 billion, but it’s not clear how they arrived at that figure.

Medicaid drugs are already subject to steep discounts, so the impact of MFN agreements on drug costs and accessibility isn’t clear.