The Trump administration has announced an agreement that would enable consumers to purchase prescription medications at a reduced cost through a new federal website. The White House announced during a news conference on Tuesday that the deal with pharmaceutical giant Pfizer will result in up to an 85% price reduction for certain medications on the direct-to-consumer TrumpRx website.
To avoid paying tariffs, Pfizer also agreed to reduce the cost of prescription drugs for the state-run Medicaid program, which is the government’s public health insurance program for low-income Americans. It follows the US president’s announcement last week that imports of branded or patented medications will be subject to a 100% tax, effective October 1.
Following Donald Trump’s summer letters to 17 pharmaceutical companies, which gave them 60 days to reply to his demands for reduced prices, Pfizer is the first company to reach a settlement. The deadline expired this week. Trump mentioned a plan to bring US prices into line with lower ones overseas at the news conference.
He declared: “Pfizer is pledging to provide Medicaid with all of its prescription drugs, at the most advantageous country’s rates. It will have a significant effect on Medicaid cost reduction. He stated that he anticipated further agreements with pharmaceutical companies to be revealed.
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