---
title: "Most-favored nation pharma deals target Medicaid but exempt Medicare, analysts say"
id: "stat-news-0-stat-how-trump-s-latest-pharma-deals-may-undermine-efforts-to-rein-in-drug-costs"
canonical_url: "https://medichelpline.com/clinical-feed/stat-news-0-stat-how-trump-s-latest-pharma-deals-may-undermine-efforts-to-rein-in-drug-costs"
content_type: "clinical_feed_article"
specialty: "Pharmacology"
source_name: "STAT News"
source_url: "https://www.statnews.com/2026/09/02/trump-most-favored-nation-drug-pricing-industry-analysts-skeptical/?utm_campaign=rss"
published_at: "2026-09-02T08:30:00.000Z"
evidence_level: "Verified Feed"
license: "CC-BY-NC-4.0 / Informational Use"
---
# Most-favored nation pharma deals target Medicaid but exempt Medicare, analysts say
## Provenance & Clinical Metadata
- **Canonical URL:** https://medichelpline.com/clinical-feed/stat-news-0-stat-how-trump-s-latest-pharma-deals-may-undermine-efforts-to-rein-in-drug-costs
- **Specialty:** [Pharmacology](https://medichelpline.com/clinical-feed/pharmacology.md)
- **Primary Source:** STAT News
- **Source URL:** [Original Journal Publication](https://www.statnews.com/2026/09/02/trump-most-favored-nation-drug-pricing-industry-analysts-skeptical/?utm_campaign=rss)
- **Published At:** 2026-09-02T08:30:00.000Z
- **Evidence Rating:** Verified Feed
## Executive GIST (TL;DR)
- The White House announced new voluntary drug-pricing deals on Sept. 2, 2026, between the administration and several midsize biotechnology companies; President Trump made the announcement in the Oval Office with senior officials including Robert F. Kennedy Jr., Howard Lutnick, and Mehmet Oz. - The agreements are described as **most-favored nation** (MFN) arrangements intended to bring U.S. prices more in line with those paid by peer nations. - According to official materials and reporting, the deals primarily apply to **Medicaid**, which by statute receives the lowest prices among U.S. payers. - In exchange under these voluntary deals, companies are reportedly exempt from taking mandatory price reductions in **Medicare**; that exemption is a key feature highlighted by analysts. - Industry analysts quoted in the coverage expressed skepticism that the deals will produce significant near-term savings for most Americans because the price effects are limited by scope (Medicaid-focused) and by the Medicare exemption. - The reporting notes the White House framing of the deals as a political win for Republicans ahead of midterm elections, with the administration viewing drug pricing as a voter-facing issue. - The article is published as a STAT+ exclusive; the publicly available portion of the story outlines the core deal structure and reactions but indicates that additional details are behind the STAT+ paywall. - The coverage links to the White House fact sheet and to prior STAT reporting on related MFN announcements; full reporting and further specifics of the agreements were not available in the free portion of the article. - Source-only facts: the word “most-favored nation,” the focus on matching peer-nation prices, the Medicaid scope, the Medicare exemption, the announcement date and participants, and that analysts are skeptical were all reported in the source.
## Clinical Analysis & Structured Key Points
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Test your knowledge with our new weekday mini crossword [ Start solving ](https://www.statnews.com/stat-mini-crossword/) [STAT Plus](https://www.statnews.com/stat-plus/)[Politics](https://www.statnews.com/category/politics/) # How Trump’s latest pharma deals may undermine efforts to rein in drug costs ## Drugmakers agreed to lower prices in Medicaid, where prices are low. In return, they’re exempt from lowering prices in Medicare * [Manage alerts for this article](https://www.statnews.com/my-account/edit/#emails) * Email this article * [Share this article](https://www.statnews.com/2026/09/02/trump-most-favored-nation-drug-pricing-industry-analysts-skeptical/?utm_campaign=rss) ![](https://www.statnews.com/wp-content/uploads/2026/08/GettyImages-2292880922-645x645.jpg) President Trump, with health secretary Robert F. Kennedy Jr., commerce secretary Howard Lutnick, and CMS administrator Mehmet Oz, announces “most-favored nation” drug pricing agreements with several heads of U.S. pharmaceutical manufacturers who gathered in the Oval Office on Monday.Kevin Dietsch/Getty Images ![](https://www.statnews.com/wp-content/uploads/2022/11/john-wilkerson-avatar-round-80x80.png) By [John Wilkerson](https://www.statnews.com/staff/john-wilkerson/) Sept. 2, 2026 Washington Correspondent ![](https://www.statnews.com/wp-content/uploads/2022/11/john-wilkerson-avatar-round-80x80.png) [John Wilkerson](https://www.statnews.com/staff/john-wilkerson/) 1. [](https://x.com/john_wilkerson "X") john.wilkerson@statnews.com John writes about the politics of health care, and he is the author of the twice-weekly [D.C. Diagnosis newsletter](https://www.statnews.com/signup/dc/). You can reach John on Signal at John_Wilkerson.07. WASHINGTON — The White House announced [more drug pricing deals](https://www.statnews.com/2026/08/31/trump-most-favored-nation-drug-pricing-new-round-price-cuts-announced/) on Monday, this time with midsize biotechnology companies. In doing so, President Trump once again grabbed headlines on a topic he believes will benefit Republicans in the midterm elections. But the voluntary deals might not amount to much, at least not immediately, according to analysts. That’s because they [chiefly apply to Medicaid](https://www.whitehouse.gov/fact-sheets/2026/08/fact-sheet-president-donald-j-trump-announces-deal-with-nine-additional-pharmaceutical-manufacturers-to-lower-drug-prices-for-americans/), which by law gets the lowest prices of any U.S. payer, while exempting companies from mandatory price reductions in Medicare. Advertisement The idea behind the agreements, called most-favored nation, or MFN, is that the United States should pay prices comparable to peer nations. STAT+ Exclusive Story Already have an account? [Log in](https://www.statnews.com/login/) ![STAT+](https://www.statnews.com/wp-content/themes/stat/images/stat-plus-breaker-bg.png) [ ![STAT+](https://www.statnews.com/wp-content/themes/stat/images/stat-plus-logo-white.svg) ](https://www.statnews.com/stat-plus/) ## This article is exclusive to STAT+ subscribers ### Unlock this article — plus daily intelligence on Capitol Hill and the life sciences industry — by subscribing to STAT+. Already have an account? 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