White House says Trump's drugmaker deals could save economy $529B over next decade
Trump makes announcement on drug pricing deal
President Donald Trump made a major healthcare announcement from the Oval Office on Thursday. The president said the White House struck a deal with Regeneron to lower prescription drug prices. Trump was joined by several people including HHS Secretary Robert F. Kennedy Jr.
As President Donald Trump and his administration fight to lower the cost of prescription drugs, a new analysis from the White House says the deals could save the economy $529 billion in the coming years.
The Trump administration has made deals with 17 major pharmaceutical companies in recent months.
Trump and prescription prices
FILE - U.S. President Donald Trump, accompanied by Administrator for the Centers for Medicare & Medicaid Services (CMS) Mehmet Oz (L), Health and Human Services Secretary Robert F. Kennedy Jr. (2nd-R) and Food and Drug Administration (FDA) Co
The backstory:
The Trump administration has made several so-called "most favored nation" deals with drug companies to bring U.S. pharmaceutical prices to the same level as other developed nations.
Last July, Trump publicly sent letters to executives at 17 major pharmaceutical companies about the issue.
Most recently, Regeneron was the final one of those companies to strike a deal with the administration.
By the numbers:
An analysis done by administration officials for the White House Council of Economic Advisers was obtained by The Associated Press and estimates the deals will save the economy $529 billion over the next decade.
One model in the report estimated savings could be as high as $733 billion in that timeframe.
They also estimated that federal and state governments could save a combined $64.3 billion on Medicaid.
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Dig deeper:
Few of the details of the deals struck by the Trump administration and 17 leading pharmaceutical companies have been made public, making it hard to independently verify the projected savings, The Associated Press said.
The White House said it has not shared the text of the agreements because they include highly sensitive data that could move financial markets.
The other side:
Democrats have said they want more details about the agreements made between drugmakers and the government, and the estimated savings analysis is likely to trigger additional questions about the data.
Democrats say these price reductions will be offset by higher costs for prescription drugs not covered by the "most favored nation" framework. And one of their main critiques is that pharmaceutical companies have increased their profit margins while working with the administration.
Meanwhile:
Trump says his prescription drug pricing plan is critical for Republicans in the November midterm elections, which will decide majorities in the House and Senate.
Many Americans are concerned about cost-of-living expenses increasing, especially as higher energy prices are tied to the Iran war.
What they're saying:
"Now you have the lowest drug prices anywhere in the world," Trump said at a Friday rally before a crowd of seniors in Florida. "And that alone should win us the midterms."
RELATED: Johnson & Johnson is the latest company to list drugs on TrumpRx
What is TrumpRX?
Separately:
In February, the Trump administration launched TrumpRx, a website officials say will help patients buy certain prescription drugs at discounted prices. TrumpRx doesn’t sell discounted medications; it directs users to drugmakers’ own direct‑to‑consumer websites.
The Source: Information in this article was taken from a White House economic analysis obtained by The Associated Press. Background information was taken from The Associated Press and previous FOX Television Station reporting. This story was reported from Detroit.