Trump administration plans drug-pricing deals with midsized biotech companies

The Trump administration plans to announce drug-pricing agreements with several midsized biotech companies on Monday, Bloomberg reported, citing people familiar with the matter. The companies would provide discounts on outpatient drugs to state Medicaid programs, an arrangement intended to align the prices states pay with prices charged in foreign countries. State Medicaid participation would be optional. In return, the companies would be exempt from pilot programs requiring similar discounts in Medicare, while relief from tariffs is part of some discussions. The agreements' potential savings for the federal government and low-income and disabled Medicaid patients remain unclear because Medicaid already receives substantial legally required manufacturer discounts and enrollees often have limited prescription out-of-pocket costs. White House spokesman Kush Desai said the administration was making progress on additional most-favored-nations deals to reduce drug costs for American patients, but cautioned that proposed deals or events remain speculation until officially announced. The drugmakers involved have not been disclosed.

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