Trump’s Most Favored Nation Drug Pricing Has Bold Aims, But Limited Impact

InnovationHealthcareTrump’s Most Favored Nation Drug Pricing Has Bold Aims, But Limited ImpactByJoshua P. Cohen,Senior Contributor.Forbes contributors publish independent expert analyses and insights. Joshua Cohen is a Boston-based writer who covers health policy.Follow AuthorJun 02, 2026, 02:12pm EDT--:-- / --:--This voice experience is generated by AI. Learn more.This voice experience is generated by AI. Learn more.WASHINGTON, DC - NOV. 6, 2025: U.S. President Donald Trump, joined by members of the pharmaceutical industry and administration officials, takes questions from reporters as he delivers remarks on lowering drug prices in the Oval Office at the White House. Trump announced that his administration has reached agreements with drugmakers Eli Lilly and Novo Nordisk that would lower the prices of several GLP-1 weight loss medications to align with what's being paid for the products by other wealthy nations. (Photo by Andrew Harnik/Getty Images)Getty ImagesMost favored nation policies being pursued by the Trump administration strive to better align prescription drug prices between the United States and peer nations. Theis approach to pharmaceutical pricing have been on President Trump’s agenda since his first term in office, though it wasn’t implemented then. In his second term, though, his administration is carrying out MFN policies which include a Medicaid model and a TrumpRx online platform for cash-pay patients. While the initiatives feature bold aims to reduce the cost of medicines, the impact is limited, and in some instances unclear, a case of style over substance.Medicaid’s GENEROUS ModelIn exchange for a three-year reprieve from threatened tariffs on their products, Trump has signed deals with 17 large pharmaceutical companies. These strictly confidential agreements between the administration and drug manufacturers are designed to lower the prices of selected drugs in Medicaid, the main public program providing health insurance coverage for low-re...