President Trump announced "TrumpRx" Tuesday, a government-run website with Pfizer as its first partner, offering select drugs at discounts.
Why it matters: TrumpRx is the administration's latest move to bring down U.S. drug prices, but it's unlikely to save much for the 92% of Americans with health insurance.
- The site, intended to launch next year, functions as a sidecar to recent White House agreements with drugmakers meant to cut U.S. costs.
- The Wall Street Journal reported that most insured patients probably pay less through their plans than they would at cash prices on TrumpRx.
Driving the news: Trump and Pfizer said Tuesday that certain drug prices will drop as the two move closer toward the president's "most-favored-nation" pricing plan.
- Pfizer plans to offer nearly all drugs to Medicaid at "most-favored-nation" prices, and Pfizer agreed it won't charge more in the U.S. for new drugs compared to other wealthy countries.
- Pfizer said its drugs will be available through TrumpRx at discounted rates, but only for patients not using insurance.
- Pfizer said it will also invest $70 billion in U.S. manufacturing and research. The drugmaker will also be exempt from tariffs — which Trump has threatened on companies that don't come to the table on drug prices — for three years.
Here's what to know about TrumpRx.
What is the TrumpRx website?
TrumpRx will allow customers to buy certain drugs offered by big drug companies at lower costs.
- Pfizer is the first drugmaker to join.
- "The United States is done subsidizing the health care of the rest of the world," Trump said Tuesday. "By taking this bold step, we're ending the era of global price gouging at the expense of American families."
Reality check: Direct-to-consumer websites like TrumpRx already exist. Generally, these sites offer lower prices for cash, but still higher than when using insurance, per ABC News.
- Medicaid already pays some of the lowest prices for drugs, and most on Medicaid pay little to no money out of pocket.
Inside TrumpRx and early details:
TrumpRx isn't expected to launch until early next year, officials said.
- The actual site, TrumpRx.gov, currently isn't active.
Zoom in: The site will not sell or distribute medications directly.
- Instead, customers can search for medications on the site, CNN reports.
- They will then be redirected to a direct-to-consumer channel from the manufacturer to make purchases, officials said. The site doesn't vend the drugs specifically.
- Pfizer says many of the company's drugs and some specialty brands will see 50% savings on average on TrumpRx, compared to buying the drugs without insurance.
What's next: Officials are still finalizing how the site will look and function. The White House declined to comment Wednesday on website details.
Why was TrumpRx created?
Trump has long pushed drugmakers to adopt his "most favored nation" pricing policy — tying U.S. prices to those paid in other wealthy nations.
- In May, Trump signed an executive order that called on Health Secretary Robert Kennedy Jr. to organize direct-to-consumer purchasing programs for manufacturers to sell drugs to Americans at lower costs.
- American drug prices remain higher than in other countries. Both Trump and former President Biden have pushed for lower costs.
Worthy of your time: Mark Cuban's Cost Plus Drugs uses a similar model to "TrumpRx," offering low-cost medications with transparent prices.
- Cuban said on X Tuesday that Trump has "some great people working on this project," but he would "give the program, and what we know, as of today, a grade of B."
Go deeper: Trump and Pfizer announce deal to lower drug prices, launch TrumpRx website
