President Trump announced that all 50 states, the District of Columbia and Puerto Rico have agreed to participate in his most-favored-nation drug pricing plan for Medicaid, the government insurance for the poor.
The White House Council of Economic Advisers said it could save state governments $27.6 billion and the federal government $36.6 billion over the next decade.
“Every state will now have the ability to use those extra billions of dollars to invest in other healthcare improvements or something else, but they are going to save,” Mr. Trump said in the Oval Office. “States are going to save billions of dollars.”
“This will help save Medicaid and protect it for future generations,” Mr. Trump said.
In addition to administration health officials, Mr. Trump was joined by GOP Govs. Sarah Huckabee Sanders of Arkansas, Tate Reeves of Mississippi and Larry Rhoden of South Dakota.
“If we put 50 governors in this room, I don’t think we could all agree that today was Friday, but all 50 states are participating in this opportunity to cut prescription drugs at the state level in Medicaid, and that speaks to how big of a deal this is,” Mr. Reeves said.
Friday’s announcement comes just six weeks ahead of the midterms, and cost-of-living issues are at the top of voters’ minds. The initial success of the program gives Republicans a talking point on reducing healthcare costs.
The U.S. pays more for prescription drugs than any other country. Mr. Trump launched several efforts to close the gap.
The administration has signed deals with more than two dozen drug companies, including some of the largest companies such as Pfizer, Eli Lilly, and Novo Nordisk, to offer their prices to Medicaid at the same prices overseas.
Last month, the administration announced a new round of drug-pricing agreements with international pharmaceutical programs and some smaller biotech firms.
Under the program, the companies agreed to offer lower prices to Medicaid for their drugs.
Medicaid, which is funded jointly by state and federal governments, already draws steep discounts from drugmakers because it is for low-income Americans.
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