President Trump revealed Tuesday that his administration is preparing to roll out a new online portal that will let Americans order prescription drugs directly from pharmaceutical companies. The plan is pitched as a way to cut expenses for patients, though many details have yet to be finalized.
At 79 years old, Trump stood in the Oval Office beside Pfizer CEO Albert Bourla to announce the initiative, which will operate under the name “TrumpRx” and is expected to launch in early 2026.
Pfizer’s involvement stems from a broader agreement reached with the administration that ties into lowering the rates Medicare pays for medications.
Even so, significant aspects of the sweeping plan — which aims to bring U.S. drug prices in line with those charged abroad — remain uncertain.
One major unknown is whether other pharmaceutical companies will join the effort prior to the launch.
Another unresolved issue is whether the program will have much effect on the two-thirds of Americans who get coverage through private insurance.
“I think it’s one of the biggest things that we’ll do. We’ll be reducing drug prices by 100% in some cases, 300% or more,” Trump told reporters on the South Lawn before the formal White House announcement.
“Pfizer is committing to offer all of their prescription medications to Medicaid, and it will be at the most favored nation prices,” Trump added during the Oval Office event. “It’s going to have a huge impact on bringing Medicaid costs down, like nothing else.”
The “most favored nation” (MFN) system sets U.S. drug costs by comparing them to the prices in eight wealthy countries — Canada, the U.K., France, Germany, Italy, Japan, Denmark and Switzerland — and negotiating accordingly, with the goal of narrowing price disparities.
Trump explained that under the TrumpRx arrangement, Pfizer would make some of its leading medications available with discounts ranging from 50% to full coverage, while all new products would be priced in line with MFN standards.
Among the drugs listed for the program are Xeljanz for arthritis (40% off), Zavzpret for migraines (50% off), Eucrisa for dermatitis (80% off), and Duavee for osteoporosis (85% off).
For patients without coverage, the savings could be especially dramatic.
For example, Xeljanz is listed at more than $6,000 for a 30-day supply if purchased without insurance, according to Pfizer’s website. Through TrumpRx, that cost could be cut so sharply that an uninsured person might save more than $36,000 annually.
Still, the benefit will be limited for those who already pay minimal copays. Currently, 87% of Americans with commercial insurance, all Medicaid enrollees, and nearly 80% of Medicare Part D recipients spend between $0 and $20 for that same prescription.
Nevertheless, Health and Human Services Secretary Robert F. Kennedy Jr. praised Trump’s move as groundbreaking. “Never has a president stood up so bravely for the American people with respect to health care,” Kennedy said.
Dr. Mehmet Oz, who oversees the Centers for Medicare & Medicaid Services, lauded Pfizer’s chief. Bourla, he said, “looks very calm up here and cat-like, but he’s ferocious when you get him in a negotiating room.”
The administration also disclosed that Pfizer has committed to investing $70 billion to expand U.S. manufacturing capacity and research programs.
“It’s an historic day, because I think today we are turning the tide, and we are reversing an unfair situation,” Bourla said, noting that Trump had pushed for MFN drug pricing during his first term, before the pandemic and election loss derailed the effort.
Bourla admitted that concern over tariffs influenced Pfizer’s cooperation: “the president is absolutely right, tariffs is the most powerful tool to motivate behaviors.”
Chris Klomp, the head of Medicare, said the forthcoming platform will provide “direct access” to drugmakers and pricing “at lower prices than currently available.”
“This is bypassing middlemen. It increases transparency. In many instances, prices are 80% lower than they are today,” Klomp added.
Kennedy emphasized that Trump personally pushed the deal through, blasting foreign governments for exploiting U.S. consumers on prescription costs.
The secretary described how relentless Trump was: “The president harangued and harassed us to finish the deal,” Kennedy said. “At one point, [Centers for Medicare and Medicaid Services Administrator] Dr. [Mehmet] Oz told me, ‘I can’t take the president’s calls anymore.’”
“President Trump is doing more to lower healthcare costs than anyone else in Washington, D.C.,” White House spokesman Kush Desai declared.
Desai contrasted Trump with Democrats: “While Democrats are threatening to shut down the federal government to subsidize health care for illegal aliens, President Trump is leveraging the power of the federal government to drastically cut drug prices for everyday Americans. Democrats talked the talk for decades about drug prices, but only President Trump is actually walking the walk.”
The announcement came just before Trump’s tariff deadline requiring drugmakers to move their production stateside.
“Starting October 1st, 2025, we will be imposing a 100% Tariff on any branded or patented Pharmaceutical Product, unless a Company IS BUILDING their Pharmaceutical Manufacturing Plant in America,” Trump posted on Truth Social last week.
Companies already in the process of constructing U.S. factories will be exempt.
The tariff is expected to hit smaller firms hardest, while larger players may be spared thanks to their existing U.S. plants. Johnson & Johnson, Eli Lilly, Merck, AstraZeneca and Novo Nordisk are among those already operating facilities in America.
{Matzav.com}