HHS Secretary Kennedy Credits Trump With ‘Miracle’ Drug Price Cuts, Sparking Praise Across Political Divide
Secretary of Health and Human Services Robert F. Kennedy Jr. hailed the recent reductions in prescription drug prices as nothing short of a “miracle.” These reforms, attributed to the Trump administration, have drawn unexpected praise from across the political spectrum, signaling a possible shift in traditional partisan divides.
During a press briefing, Kennedy shared an enlightening moment with his son, who identifies as a “very, very left-wing Democrat.” This son, once skeptical about the Republican administration, expressed pride in what has become a significant achievement. “He said, ‘Dad, I want to tell you how proud I am about this. This is the best achievement that could happen to our country,’” Kennedy relayed, illustrating that even those who typically oppose the administration can recognize impactful changes when they occur.
This pricing overhaul centers around the Trump administration’s most favored nation (MFN) pricing framework and the newly launched GENEROUS Model. The objective is straightforward: American patients should no longer face exorbitant drug costs compared to those in Canada or Europe—regions that sometimes offer the same medications produced in identical factories.
Kennedy recounted stark price discrepancies, emphasizing, “We were paying $1,300 for a drug manufactured in New Jersey…the same drug sold for $88 in London.” He pointed out the long-standing unfairness, noting that American consumers have been unfairly burdened while the rest of the world benefited from U.S. pharmaceutical innovation without contributing their fair share.
This dramatic shift has gained momentum thanks to a combination of executive action and legislative reform. Kennedy explained how the administration pressed pharmaceutical companies to align their prices with international standards. “President Trump told me and Dr. Oz at the beginning of this term, this is what I want you to do,” he said, indicating a clear directive from the top that has shaped the approach to drug pricing.
As costs for essential medications soared significantly—expected to surpass $100 billion in gross Medicaid drug spending in 2024—the need for decisive action has become increasingly urgent. Even with rebates, American taxpayers confronted more than $60 billion in medication expenses. Medicaid, serving over 90 million low-income Americans, felt the strain from soaring pharmaceutical prices.
In response, the Centers for Medicare & Medicaid Services (CMS) unveiled the GENEROUS Model, which seeks to align Medicaid drug costs with those paid by other developed nations. This program promises transparent pricing standards and pricing agreements negotiated by CMS. Dr. Mehmet Oz, the CMS Administrator, stated, “The GENEROUS Model will help ensure state Medicaid programs are paying a fair and reasonable price.” For millions relying on Medicaid, especially vulnerable seniors and low-income families, the potential for relief is significant.
Two pivotal arrangements with Eli Lilly and Novo Nordisk highlight the reform’s implications. Previously, drugs for weight loss and diabetes, such as Zepbound and Wegovy, cost U.S. patients as much as $1,350 monthly. Now, these medications can be accessed for about $250 through TrumpRx.gov, a consumer pricing platform initiated to facilitate these changes. Medicaid and Medicare co-pays have also dropped significantly, showing promising signs of relief for patients in need.
The financial numbers reveal the magnitude of these changes. Wegovy’s price fell from $1,350 to $250, while Zepbound dropped from $1,080 to $346. For low-income programs, insulin costs a mere three cents per vial, plus fees. These adjustments are expected to make a considerable difference, allowing Americans to lose an estimated 135 million pounds over the coming years through expanded access to crucial treatments.
Pharmaceutical companies consented to cap U.S. prices at “most favored nation” levels, ensuring that American prices would not exceed those in other developed countries. In return, the administration provided manufacturing incentives, encouraging Eli Lilly and Novo Nordisk to invest over $37 billion in U.S. production, which aims to restore domestic manufacturing and reduce reliance on overseas supply chains.
The consequences for drug manufacturers are serious. Analysts predict that enforcing the most favored nation framework across all sectors could result in over $1 trillion in lost revenue for pharmaceutical companies over the next decade. However, proponents of the reform, including the Trump administration, suggest that the advantages for consumers far outweigh these potential downsides.
Kennedy made his stance clear: “This is a miracle. Every president before talked about solving this—Clinton, Obama, Biden—they all promised. President Trump is the one who delivered.” His assertion paints a vivid picture of the historical challenges in achieving drug pricing reform, underscoring the current administration’s success in effecting tangible change.
The implications of this initiative extend well beyond Medicaid and diabetes medications. President Trump recently signed an executive order addressing Medicare drug prices and insulin accessibility, along with reforms regarding importation. This action directs HHS to negotiate lower prices, expedite generic drug approvals, and eliminate delays in the eligibility for negotiation between biologics and small-molecule drugs. The FDA has also been tasked with fast-tracking approval processes for state-led drug importation programs, setting the stage for broader cost reductions.
This substantial reform emphasizes a multilateral approach, involving agencies such as the FDA, the Commerce Department, and Medicare administrators. The Commerce Department is considering import tariffs based on national security grounds, adding another layer of pressure on foreign manufacturers to ensure fair pricing for U.S. patients.
More significantly, this drug pricing framework establishes a new standard for addressing domestic disparities and foreign exploitation. For years, American innovation has suffered as other nations enjoyed the fruits of U.S. efforts without equitable compensation. “Those days are over,” asserts Kennedy, signaling a firm commitment to reshaping the landscape of health care affordability.
The broader political ramifications should not be overlooked. This initiative brings together voices from both the left and right, united by frustrations over health care costs. Kennedy’s share of his son’s approval illustrates a rare moment of agreement in American politics, suggesting that even entrenched partisan lines can be crossed in the face of tangible benefits.
“This is something Bernie Sanders and Elizabeth Warren have dreamed of. But it was President Trump who got it done,” Kennedy concluded, encapsulating a transformation that resonates beyond the political fray. His remarks reveal a significant turning point in the ongoing battle for affordable healthcare in the United States.
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