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Trump drug pricing deals may undercut Medicare savings goals

A photo of red medication capsules scattered on a yellow surface.
Photo: Michael Bocchieri/Getty Images

Trump administration drug pricing agreements could lower some costs but may sharply reduce projected Medicare savings.

The Trump administration’s “most-favored-nation” (MFN) drug pricing agreements with 26 pharmaceutical companies could reduce prescription drug costs for some government programs while potentially weakening separate Medicare initiatives designed to generate larger savings.

The White House has promoted the agreements as a way to align US drug prices more closely with

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