Since September, 16 major drug companies made deals with the Trump administration aimed at lowering drug prices. However, shockingly, all 16 raised the prices of some medications in January — the traditional time for such increases. This scenario has sparked concern and confusion among consumers.
These deals, often called “most favored nation” agreements, intended to secure lower prices for Americans and encourage wealthier nations to pay more for new drugs. Yet, a recent study from 46brooklyn, a drug pricing research firm, revealed that 872 brand-name drugs saw price hikes in early 2026. This includes essential medications for cancer, heart failure, and diabetes, alongside increased costs for some COVID-19 vaccines.
Antonio Ciaccia, CEO of 46brooklyn, pointed out that the real impact of these deals often becomes clear only after they are signed. He notes, “January is prime time for list price changes on brand-name drugs. Looking at the current situation, we’re tracking closely with trends from previous years.” The median price increase was 4%, matching last year’s rise despite the promised price reductions.
In the pharmaceutical industry, list prices serve as the baseline for negotiations with insurers and pharmacy benefit managers. These prices can affect which drugs are covered by insurance and what patients ultimately pay. When asked about the recent price hikes, White House spokesperson Kush Desai downplayed the importance of list prices, emphasizing that the discounts linked to the agreements would benefit state Medicaid programs and cash-paying patients.
The Biden administration has called on Congress to support its Great Healthcare Plan, reflecting an ongoing push for more substantive changes in drug pricing. Dr. Mehmet Oz, head of the Centers for Medicare & Medicaid Services, asserted that this plan would “codify” the negotiated discounts.
However, many details about the deals remain elusive, as the administration has not released full documents. During announcements, officials hinted at commitments for Medicaid discounts and pledges for future drugs to maintain the same price in other wealthy countries as in the U.S. Some drugs are now available at discounted rates for uninsured or cash-paying customers via a new website.
Despite these promises, Dr. Ben Rome, a health policy expert, suggests the deals may not significantly affect the majority of consumers. “Those agreements probably won’t alter drug pricing for most Americans,” he says.
In January, Pfizer, one of the first companies to make these deals, raised prices on 72 drugs, including a 15% increase on their COVID-19 vaccine. Merck followed suit with similar price hikes on several products, claiming the increases are needed to reflect their clinical value and cover rising costs.
Interestingly, not all companies raised prices. Some, like Novo Nordisk, significantly lowered prices for certain drugs. For instance, Fiasp, an insulin product, saw a dramatic 75% price decrease. This reduction was part of broader efforts to make medications more affordable for patients.
Ciaccia argues that recent negotiations with Medicare could be influencing these price cuts, suggesting that they represent a shift in the industry. Nevertheless, Dr. Ben Rome urges caution in attributing these changes to one specific policy, noting that several factors likely contribute to pricing decisions.
In conclusion, while drug companies signed agreements to lower prices, many have still increased costs for consumers. This complex landscape highlights the ongoing struggle for affordable healthcare in the U.S.
For more information, you can visit 46brooklyn’s analysis here.
