Trump UNLEASHES 85% Drug Price COLLAPSE

Stethoscope and prescription pills on a background of dollar bills

President Trump just pulled off what decades of politicians promised but never delivered: forcing America’s biggest drug companies to slash prescription prices by up to 85 percent through a combination of executive pressure and voluntary agreements that critics said would never work.

Story Snapshot

Fourteen pharmaceutical giants signed voluntary Most-Favored-Nation pricing deals by December 2025, slashing prices on diabetes, obesity, cancer, and HIV medications.
TrumpRx.gov now offers direct-to-consumer discounts reaching 85 percent, with drugs like Ozempic dropping from $1,000 to $350 monthly.
Medicaid and Medicare beneficiaries gain unprecedented access to obesity drugs at $50 copays, while private insurance holders see limited benefit due to deductible structures.
Pharmaceutical companies committed over $150 billion to U.S.-based research and manufacturing as part of the agreements.

The Pressure Campaign That Changed Everything

Trump’s executive order on May 12, 2025, set the stage for what his administration called “relentless harassment” of pharmaceutical executives. The order directed federal agencies to align U.S. prescription drug prices with those in Canada, Denmark, France, Germany, Italy, Japan, Switzerland, and the United Kingdom. By July 31, personalized letters landed on the desks of Big Pharma CEOs demanding compliance. The message was clear: negotiate voluntarily or face potential regulatory consequences. This approach differed sharply from Trump’s first-term attempt, which courts blocked, by securing private agreements rather than mandating rules through regulation.

HHS Secretary Robert F. Kennedy Jr. credited Trump’s deal-making prowess and willingness to apply sustained pressure. The strategy leveraged Medicaid access as a powerful bargaining chip. States participating in Medicaid would only cover drugs at Most-Favored-Nation rates, forcing companies to choose between accepting lower prices or losing access to millions of patients. Pfizer became the first to sign on September 30, 2025, offering discounts up to 85 percent through the new TrumpRx platform. AstraZeneca followed on October 10, then Eli Lilly and Novo Nordisk in November, with nine additional firms joining by December 19.

What Americans Actually Save at the Pharmacy Counter

The numbers tell a dramatic story for certain patients. TrumpRx.gov, a direct-to-consumer platform, lists prices that bypass traditional insurance networks. Repatha, a cholesterol medication, dropped from $573 to $239. Reyataz for HIV fell from $1,449 to $217. Jentadueto for diabetes decreased from $525 to $55. GLP-1 drugs treating obesity and diabetes saw massive cuts: Ozempic and Wegovy now cost $350 monthly instead of $1,000 to $1,350. Medicare beneficiaries pay as little as $50 copays for these treatments, gaining first-time coverage at half the cost proposed under Biden administration plans.

Medicaid recipients across all fifty states access these drugs at $245 monthly for major GLP-1 medications, representing billions in taxpayer savings. The administration projects this will remove affordability barriers for millions battling chronic diseases like diabetes, obesity, and heart conditions. Yet Raymond James analyst Chris Meekins, a former Trump health official, raised concerns that private insurance holders might not see meaningful relief. TrumpRx purchases don’t count toward insurance deductibles, meaning most commercially insured Americans would still face high out-of-pocket costs until meeting annual thresholds. The deals primarily benefit cash-paying patients, the uninsured, and public program enrollees.

Foreign Price Controls and the U.K. Trade Agreement

Trump’s team framed the initiative as ending decades of foreign “free-riding” on American pharmaceutical innovation. The argument holds that countries with government-run healthcare systems negotiate artificially low drug prices, forcing U.S. consumers to shoulder the research and development costs that fuel new treatments. The Most-Favored-Nation model bases U.S. prices on the second-lowest among eight developed nations, adjusted for income levels and post-discount calculations. This mathematical approach aims to balance affordability with incentives for continued innovation domestically.

On December 1, 2025, the administration announced a separate agreement with the United Kingdom to raise their prescription drug prices by 25 percent. This move directly addressed complaints that Americans subsidize lower costs abroad. The U.K. deal represents a broader trade strategy, signaling to other nations that access to American pharmaceutical markets requires more equitable pricing structures. Pharmaceutical companies participating in the agreements committed to applying Most-Favored-Nation pricing not just to existing drugs but to all future launches, locking in the framework for years ahead.

Manufacturing Jobs and Long-Term Industry Commitments

Beyond pricing, the fourteen agreements secured promises totaling over $150 billion in domestic investment. Pharmaceutical companies pledged to expand U.S.-based research facilities and manufacturing plants, potentially creating thousands of jobs in states that lost industrial bases over recent decades. This requirement addresses conservative priorities around American self-sufficiency and reducing dependence on foreign supply chains, particularly those running through China. The voluntary nature of these deals gave companies flexibility to structure their commitments while avoiding the regulatory battles that doomed earlier attempts.

CMS Administrator Mehmet Oz joined Kennedy in praising the arrangements as historic victories for affordability. Trump declared them the “largest developments to date” and promised additional deals with insurers to extend benefits to private plan holders. The administration’s framing emphasizes results over process, positioning these handshake agreements as proof that aggressive negotiation works better than legislative stalemates. The structure avoids congressional gridlock entirely, relying on executive authority and voluntary corporate participation rather than statutory changes that could take years to enact or face immediate legal challenges from industry groups.