(NewsNation) — President Donald Trump announced Tuesday that Pfizer has committed to offering discounts for prescription drugs for Medicaid and offer a direct-to-consumer program.
“This is a result of the most favored nation drug pricing order that we established early this year,” Trump said. “Now, we’re going to be paying whatever the lowest price is.”
The company will also offer some of its drugs at a discount directly to consumers from a website operated by the federal government. The company would do the same with new drugs from Pfizer.
Trump said drug prices would be coming down “immediately.”
The deal does not include most-favored-nation pricing for Medicare recipients or those with private insurance offered by an employer or through the health care exchange.
It is unclear which drugs will be covered and whether high-cost specialty medications will be included.
The president said the administration is working to sign similar deals with other drug manufacturers.
Health Secretary Robert F. Kennedy Jr. called it a shield for the chronically ill.
“We won’t write blank checks to the drug industry any longer,” Kennedy said.
Pfizer CEO Albert Bourla described the deal as “reversing an unfair situation,” where the U.S. paid more for drugs than other countries.
Examples of discounts for medications to treat dermatitis, osteoporosis, migraines and rheumatoid arthritis, with discounts ranging from 90% to 40%.
A drug for rheumatoid arthritis was given as an example with a 40% discount.
Pfizer’s rheumatoid arthritis drug is Xeljanz, which has a list price of $5,940.14 and up. A 40% discount on that medication would still have a cost of $3,500 or more per month.
On X, White House Press Secretary Karoline Leavitt announced that the White House would unveil a direct-to-consumer website for prescription drugs, named TrumpRx.
Trump claimed that Democrats want a shutdown and are asking for health care for those in the country without documents.
A reporter asked for clarity on that claim, noting that Democrats are asking for an extension of Affordable Care Act subsidies for people buying health care on the exchange and people in the country illegally do not qualify for those subsidies.
Trump said he had a bigger heart than the reporter asking the question, then pivoted to his desire to deploy troops to American cities to fight crime, over the objection of state and local officials.
He repeated his belief that restaurant business is up since he deployed troops in the capital, though data shows business has dropped to COVID-19 levels.
He did not provide an answer to the question regarding health care.
Trump will speak from the Oval following his appearance at a meeting of top military brass called by Secretary of Defense Pete Hegseth.
Hegseth summoned military leaders, including generals stationed overseas, to Quantico, Virginia, where he gave a speech on changes he wanted to see in the armed forces. Hegseth said he wanted increased physical fitness standards, an end to complaints about toxic leadership, an end to diversity and inclusion efforts and an end to focus on climate change.
Trump also spoke at the gathering, where he blamed President Joe Biden for the military’s struggles to meet recruiting goals, repeated his claim that he has ended multiple wars and touted an end to political correctness in the military.
TrumpRX site will offer one-stop shop for best drug prices: Medicare director
Chris Klomp, director of Medicare and deputy administrator for the Centers for Medicare and Medicaid Services, said the site will serve as a one-stop destination for Americans to find the best pharmaceutical prices without cross-shopping multiple sources.
“We envision a single easy place for all Americans to go and shop for pharmaceuticals and to know that they’re getting the best prices,” Klomp told “The Hill on NewsNation.” “Many of those will be the best prices in the wealthy world. One click, easy convenience.”
Dr. Mehmet Oz, administrator for CMS, said tariffs played a role in negotiations but emphasized the administration sought to protect pharmaceutical innovation while ensuring fair pricing for Americans.
“We realized that it was critical to protect innovation,” Oz told NewsNation. “We don’t want to strip the innovation out of American pharmaceuticals. We want industry to progress prosper. But at the same time, we’ve got to be fair to the American people.”
Pfizer’s stock rose 6.5% following the announcement, which Oz attributed to market confidence that the administration would not implement measures that hurt innovation.
Klomp clarified that TrumpRX.gov will function as a referral site rather than a distribution platform, directing patients to their preferred purchase method whether through pharmacies, online retailers like Amazon or directly from manufacturers.
“The government’s not in the drug distribution business. Our job is in the fairness of pricing business,” Klomp said. “These aren’t price caps. These aren’t price fixing. This is free market. We’re telling manufacturers, price your drug or whatever you want. Just don’t undercut us in another wealthy country.”