White House Projects $529B Savings from Drug Deals

White House economists estimate that deals struck by President Donald Trump's administration with pharmaceutical companies could save the U.S. economy $529 billion over the next decade by aligning some domestic prescription drug prices with those in other developed nations.

The analysis, prepared by the White House Council of Economic Advisers, provides the first economywide projections for the policy, which involves agreements with 17 leading drugmakers. Details of the deals remain largely undisclosed, complicating independent verification. Administration officials project additional savings of up to $733 billion under one model as more medications enter the framework, including $64.3 billion for federal and state Medicaid programs over 10 years. The approach, dubbed the "most favored nation" policy by Trump, assumes foreign countries will increase their payments for drugs, diversifying manufacturers' revenue and supporting innovation.

Trump highlighted the effort during a Friday rally in Florida before a crowd of seniors, stating, "Now you have the lowest drug prices anywhere in the world. And that alone should win us the midterms." The president and the Department of Health...