Most Favored Nation pricing is now active for every state Medicaid program, including the District of Columbia and Puerto Rico. The Trump administration secured agreements with 26 of the largest drugmakers to cover 90% of prescription drugs at the lowest rates offered to any other nation. The Council of Economic Advisers estimates these deals will save Medicaid more than $64 billion across all 50 states.

The price reductions apply to approximately 70 million Medicaid recipients, allowing states to reallocate funds to other healthcare improvements. Mississippi Governor Tate Reeves described the program as a big deal for state finances, noting his state spends almost $700 million annually on Medicaid drugs. Secretary Kennedy stated the administration is passing these negotiated savings directly to the most vulnerable populations in the country.