A New Way to Buy Cheaper Meds Might Be Coming—Here’s What Pfizer and Trump Are Planning

Pharmaceutical giant Pfizer announced last week it struck a deal with the Trump administration to sell select discounted drugs directly to Americans through a new federal website, TrumpRx.gov. The agreement seeks to lower medication costs, though its details and long-term impact remain uncertain.

What’s in the Pfizer-Trump Agreement?

Pfizer will offer most primary care and select specialty drugs at about a 50% discount on TrumpRX.gov, a direct-to-consumer federal online marketplace launching in 2026. 

The company also agreed to price new medications at most-favored-nation (MFN) levels, meaning U.S. buyers would pay less than what consumers in other countries do. 

The White House said Pfizer will also offer its drugs to state Medicaid programs at MFN prices, though it’s unclear whether that applies to all products or only new ones. As part of the agreement, the pharmaceutical company will have a three-year grace period during which many of its products won’t face tariffs in exchange for investing in U.S. manufacturing.

Why Do Americans Pay More for Drugs?

Research from RAND shows U.S. prescription drugs cost nearly three times more than in peer nations, and brand-name drugs over four times more.  

The gap exists because single-payer health care systems, like those in Canada, Australia, and much of Europe, negotiate directly with drug makers to keep prices low.   

Conversely, pharmacy benefit managers (PBMs) or private insurers, which have a vested interest in generating profits, negotiate U.S. drug prices. 

“We are too fractured with multiple payors, and we are all too often unwilling to say no if the price is too high,” said C. Michael White, department head of the University of Connecticut School of Pharmacy. “This means we have access to some newer and fancier therapies than other countries get, but it comes at a higher financial cost.”

Complicating matters, federal law limits the government’s ability to intervene in pricing for drugs that typically do not have a generic equivalent or competing medication.

Will TrumpRx Save You Money on Prescriptions?

Pfizer said it will offer drugs on TrumpRX at roughly 50% off, but gave few details on which products or how prices will be set, noting that “specific terms of the agreement remain confidential.” 

Other outstanding questions make it hard to predict the website’s impact. For instance, most direct-to-consumer drug platforms don’t take health insurance, instead requiring cash payments at discounted rates. If you have a top-tier health care plan, you may already pay less through small copays or coinsurance, White said. 

“Those people will likely pay more if they use this program,” he said.

Conversely, uninsured or underinsured Americans could receive net savings through TrumpRX, but their drug selection may be limited. 

While the Trump administration hopes that other pharmaceutical manufacturers will strike similar deals, it has yet to formally announce additional partners. (Pfizer and the Centers for Medicare & Medicaid Services did not respond to requests for further details on TrumpRX.)

Bigger Changes Ahead?

Other aspects of the Pfizer deal aren’t as significant as they may appear on paper, said William Padula, assistant professor at the University of Southern California School of Pharmacy

“Medicaid already has the low prices,” he said. “[Those] drugs aren’t going to see a huge shift in price.”

But Pfizer’s commitment to investing in research, development, and manufacturing in the U.S.—particularly given it shuttered a facility as recently as 2024—could ultimately prove impactful.

“Pfizer showing that [it] can do this without increasing prices means it’s possible to manufacture and create jobs in the U.S.,” Padula said. “I would hope that other [drug] manufacturers follow suit.”