The Trump administration and Pfizer have made an agreement for the drug company to sell many medications to Medicaid at favored prices, along with offering some of its drugs for sale at lower prices on TrumpRx, per Forbes. However, the outlet noted that missing details make it tough to tell exactly how this program may impact struggling Americans and their budgets.
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With the related website set to launch next year, now may be a time to consider your own medication costs and plans. Here are a few things financial experts told GOBankingRates retirees need to keep in mind with the launch of this drug program.
Also see how much you can save on prescriptions using Mark Cuban’s Cost Plus Drugs.
Website Opportunities
As NPR reported, the website is set to launch in 2026, and the plan is for it to direct users to the direct-to-consumer websites of pharmaceutical companies. While the website isn’t fully active yet, retirees may want to keep an eye out once it launches.
“Remember to look for the medication you need on the TrumpRx website,” said Melanie Musson, an insurance expert with Quote.com. “It’s designed for people who are buying medication without insurance, so if you fit in that category, your costs on the website could be considerably less than if you go to the local pharmacy.”
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Insurance Impacts
NPR noted that the discounts on the website would be accessible only for those who aren’t using health insurance.
“There will most likely be savings from the program for those uninsured. Those on insurance typically already receive discounted rates on many prescriptions, so it’s not clear if there will be any major savings for them,” according to Brandon Gregg, CFP, advisor with BBK Wealth Management.
Small Shifts To Consider
Drug costs are one of the biggest pieces of the retirement budget, so it makes sense to pay close attention to any changes, according to Taylor Kovar, CFP, CEO of 11 Financial. He said this program could touch things like out-of-pocket caps, which prescriptions are covered and how brand-name drugs are priced.
“Even small shifts can matter when you’re living on a fixed income,” Kovar said. “Talking it through with a pharmacist or advisor is a good way to see how it fits into your personal situation.”
Potential Impact on Medicaid Patients
“Although many details are still unknown, we expect to see overall savings in state Medicaid programs,” said Wes Hill, senior director of regulatory affairs at RxBenefits. “In the near term, this will primarily affect Pfizer products. However, if more manufacturers announce similar deals, Most Favored Nation (MFN) pricing may become available more broadly in Medicaid.”
According to Hill, there is no direct reference to Medicare Part D or retiree plans in the commercial insurance market in the latest announcement. However, he’s hopeful that Pfizer’s promise to launch new-to-market drugs at MFN prices, as well as repatriate foreign earnings for onshore investment, will have positive, indirect impacts on Medicare Part D and commercial market drug prices in the long term.
Discount Program Management
Per Christopher Stroup, founder and president of Silicon Beach Financial, it can be helpful to leverage discount programs alongside coverage.
“Even with the new program, out-of-pocket costs can vary,” Stroup said. “Using manufacturer discounts, pharmacy cards and mail-order services alongside your coverage can significantly reduce costs. Combining strategies helps retirees stretch savings without compromising access to necessary medications.”
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: 5 Things Retirees Need To Know About the New Trump Drug Program
