Trump Announces TrumpRx to Lower Drug Prices Amid Economic Warnings
Former President Donald Trump announced agreements with nine pharmaceutical companies to lower prices on certain medications and pledged $150 billion in new domestic manufacturing and pharmaceutical research and development investments.
The initiative, named TrumpRx, is a government-run portal designed to direct patients to lower-cost drugs offered directly by manufacturers. The full operation of TrumpRx.gov is expected to begin in January.
A key feature of the policy is most-favored nation pricing, which ties U.S. drug prices to those paid in other wealthy countries. This is intended to lower medication costs for Americans, including reducing Medicaid prescription expenses.
However, economists have warned that such price caps could shift costs elsewhere, potentially reducing funds for research and development and slowing medical breakthroughs in the future. Michael Baker of the American Action Forum commented that government price setting limits what patients pay but does not lower overall drug costs, which may lead to tighter insurance coverage or reduced innovation.
Mark V. Pauly of Wharton noted that permanent price caps below market levels would reduce incentives for new drug development, though the exact impact is uncertain.
Ed Haislmaier of the Heritage Foundation observed that the agreements may trade lower prices for expanded market access or relief from tariffs, possibly offsetting revenue losses with higher sales.
