Federal Policy
Trump Administration Announces Medicaid Drug Pricing Agreements with Nine Companies
The Trump administration announced new Medicaid drug pricing agreements with nine midsize biotechnology and pharmaceutical companies. Under the agreements, companies will charge state Medicaid programs prices equal to the lowest available globally. President Trump stated the deals will apply to every drug from participating firms. The announcement was made Monday in the Oval Office with company executives present.
Why it mattersThe agreements could reduce state Medicaid pharmacy spending and affect managed care capitation rates if drug costs decrease for covered populations.