UPDATE: New reports confirm that deals between President Donald Trump and pharmaceutical companies, known as TrumpRx, are unlikely to significantly impact drug spending for most Americans. Experts warn that while these deals offer cash-paying customers discounts, insured individuals will still benefit more from their health insurance.
Since September 30, the Trump administration has negotiated with 14 drugmakers to provide discounts tied to tariff relief. These agreements primarily benefit Medicaid recipients, leaving those with private insurance and Medicare with limited advantages. The discounts touted for cash payments may not alleviate the overall financial burden for many patients, experts emphasize.
The announcement highlights notable price reductions for specific medications. For instance, the hepatitis C medication Epclusa will cost $2,425 through TrumpRx, down from its list price of $24,920. Similarly, popular weight loss drugs Wegovy and Zepbound will see prices drop from $500 to $250 within two years. However, experts caution that these reductions may not significantly alter the spending landscape.
According to Juliette Cubanski, deputy director at KFF, “Most people with insurance coverage will continue to be better off using their insurance to obtain medications.” She adds that for those with insurance, the potential savings from TrumpRx could be minimal, especially for brand-name drugs.
A full list of covered drugs remains undisclosed, raising concerns about the transparency and effectiveness of the agreements. Richard Frank from the Brookings Institution states, “It’s not clear where the money would be saved,” noting that Medicaid already pays the lowest prices for medications in the U.S.
The administration’s push for lower drug prices coincides with a wave of price increases by drug manufacturers, averaging around 4%, according to research by 3 Axis Advisors. This dual trend complicates the situation for consumers already facing rising health insurance premiums.
Additionally, Stacie Dusetzina, a health policy professor at Vanderbilt University, points out that for uninsured individuals or those with high-deductible plans, TrumpRx could present meaningful savings compared to list prices. Yet, for most insured patients, purchasing drugs through the platform is unlikely to be the better option.
Without a comprehensive understanding of the agreements, experts remain skeptical about the overall impact of TrumpRx. Art Caplan from NYU Grossman School of Medicine emphasizes the challenge in assessing the deals’ effectiveness due to the lack of a full drug list.
As the administration prepares to launch these discounted prices “early this year,” the extent of their benefit remains uncertain. A White House spokesperson has indicated that some lower prices will be available soon, but without a clear figure on expected savings for consumers.
As discussions continue, the urgency for clarity around these drug pricing deals is paramount. Consumers and health policy experts alike are watching closely to determine whether these agreements will provide real relief or merely serve as a public relations effort amidst rising healthcare costs.
