• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

Billionaire TikTok founder is now the richest person in all of Asia, with a $105 billion net worth—he's gained $92 billion since 2019 thanks to AI

2

Ed Sheeran asked Patriots owner Robert Kraft for $2 million aid donation after Macklemore was dropped from his tour for pro-Palestine comments

3

Current price of oil as of September 18, 2026

1

Billionaire TikTok founder is now the richest person in all of Asia, with a $105 billion net worth—he's gained $92 billion since 2019 thanks to AI

2

Ed Sheeran asked Patriots owner Robert Kraft for $2 million aid donation after Macklemore was dropped from his tour for pro-Palestine comments

3

Current price of oil as of September 18, 2026
PoliticsDonald Trump

‘No one knows what is in these deals’: Trump set to announce new Medicaid drug pricing model amid affordability concerns

By
The Associated Press
The Associated Press
and
Fatima Hussein
Fatima Hussein
Down Arrow Button Icon
By
The Associated Press
The Associated Press
and
Fatima Hussein
Fatima Hussein
Down Arrow Button Icon
September 18, 2026, 4:02 PM ET
President Donald Trump speaks during a dinner in the Rose Garden of the White House.
Trump plans to announce a new plan that may bring down drug prices in Medicaid.AP Photo/Alex Brandon
Google source logo
Add Fortune on Google for similar content.

President Donald Trump is set to announce Friday that all 50 states will join in on a program set to provide most favored nation pricing to some drugs within the Medicaid program, bringing the net price of selected drugs down to prices paid in certain other countries.

Recommended Video

The Trump administration claims that Medicaid will save billions on prescription drug costs as a result of the plan, dubbed the Medicaid “GENEROUS” model. Experts say the savings are unclear since the content of the deals isn’t public.

Friday’s announcement comes as cost-of-living issues are at the forefront of voters’ concerns ahead of the midterm elections in November. In a way to address affordability concerns, Trump has cut deals with pharmaceutical companies so that the cost of some drugs in the U.S. would not be dramatically higher than in other affluent nations.

Last year, Trump signed an executive order instituting a “Most Favored Nations” policy, where the U.S. would commit to paying the same price for medications as the nation that pays the lowest price anywhere in the world.

The White House in May estimated that Trump’s deals with pharmaceutical companies to lower some of their U.S. prescription drug prices to levels charged in other countries could save $529 billion over the next 10 years.

Patients in Medicaid, the state- and federally-funded program for people with low incomes, already pay a nominal co-payment of a few dollars to fill their prescriptions, but lower prices could help state budgets that fund the programs.

The true cost of the claimed savings is unclear since few details of the deals struck by the Trump administration and participating pharmaceutical companies have been made public, making it hard to independently verify the projected savings.

Kathy Hempstead, a senior policy advisor at the Robert Wood Johnson Foundation, told The Associated Press that there is significant pressure on the administration to provide more granular data to justify its cost-savings claims, and that the lack of information creates a barrier to legislative action.

“He is saying Congress should codify all of his MFN arrangements,” Hempstead said. “But it’s kind of unreasonable because it’s not clear what Congress would actually do. No one knows what is in these deals.”

She added that there is concern about whether the current administration’s tenure will affect the longevity of these price cuts and whether prices will revert once the administration leaves.

Some want to see more people benefit from lower drug pricing.

JD Hayworth, a former Republican congressman and spokesperson for the Pharmaceutical Reform Alliance, said in a statement that Friday’s announcement reflects “meaningful progress, but that progress remains incomplete,” as millions of Americans not enrolled in government healthcare want lower drug prices.

Drug prices for patients in the U.S. can depend on a number of factors, including the competition a treatment faces and insurance coverage. Most people have coverage through work, the individual insurance market or government programs like Medicaid and Medicare, which shield them from much of the cost.

Fortune Daily breaks the traditional barrier between audience and newsroom. The show transforms Fortune’s trusted reporting into actionable, conversational, and entertaining insights for an emerging class of business leaders. Watch here.
About the Authors
By The Associated Press
See full bioRight Arrow Button Icon
By Fatima Hussein
See full bioRight Arrow Button Icon
Google source logo
Add Fortune on Google for similar content.

Latest in Politics


Most Popular

Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • TikTok icon
  • YouTube icon

    Latest in Politics


    Most Popular

    © 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
    FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.