The analysis by the White House Council of Economic Advisers estimates that the price reduction agreement reached by the Trump administration with 17 major pharmaceutical companies—bringing U.S. prescription drug prices down to levels seen in other countries—could save the U.S. economy $529 billion over the next decade, with federal and state governments reducing spending on Medicaid programs by $64.3 billion. President Trump is positioning this "most-favored-nation" drug pricing policy as a central achievement ahead of the midterm elections, claiming Americans now enjoy the lowest drug prices in the world and asserting that this alone should help the Republican Party win the midterms. Cost pressures remain a top concern for voters, while the war in Iran has further driven up energy prices, intensifying public anxiety. However, these estimates still face significant uncertainty. Very few public details have been released about the specific terms of the agreements between the Trump administration and the pharmaceutical companies, making it difficult for outside observers to independently verify the scale of savings claimed by the White House. The White House report also presents an alternative model suggesting that if more new drugs enter the framework, savings could reach as high as $73.3 billion over ten years. Democratic lawmakers had previously expressed skepticism toward Trump’s claimed drug price reductions, and they are expected to raise further questions about the methodology behind the calculations, the enforceability of the agreements, and the actual scope of implementation.
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Original article: toutiao.com/article/1864416234327243/
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