President Donald Trump is actively pushing House Republicans on a proposal that would slash drug prices on prescriptions covered by Medicaid, Politico first reported.
Trump's proposal is an alternative to making cuts to Medicaid itself, something he has repeatedly vowed not to do in an effort to find $1.5 trillion in federal cuts to fund his domestic policy agenda, according to the report.
What Trump has called his "most favored nation" policy regarding prescription drug costs — linking what Medicaid pays for specified medicines to the lowest price that drugmakers charged in comparable nations — is also one he considered in his first term in office, according to the report.
House Speaker Mike Johnson, R-La., however, said Thursday he's "not a big fan of that, so we'll see how it goes."
House Energy and Commerce Committee Chair Brett Guthrie, R-Ky., told reporters he was "absolutely open" to the idea.
"That just came up the last couple days," Guthrie said, according to the report. "We're trying to sort through the policy."
Trump's proposal, eyed only for cost of medicines with Medicaid, would put drug prices in line with what certain foreign countries are charged.
"Like pharmaceuticals, for a minute, you realize the United States of America pays for drugs, and the rest of the world free rides," Commerce Secretary Howard Lutnick told Newsmax on Wednesday. "You know how you can understand the rest of the world? We pay for the drug, and they pay the copay. They're paying like the $10, $20, $30."
It's a move that could generate hundreds of billions in savings and mitigate cuts that some Republicans are looking to take from Medicaid coverage, such as President Barack Obama's 2010 expansion under the Affordable Care Act.
"Nobody's losing coverage under [Trump's] scenario," a White House official told Politico. "The question is: are they willing to fight the pharma companies? I guess we'll find out. We're willing to fight."
Some conservatives see the plan as "price fixing" and instead are pushing for "structural Medicaid reform."
Rep. Chip Roy, R-Texas, and 19 other House Republicans signed a "Dear colleague" letter on Thursday that said failing to reform Medicaid now will set up "massive tax increases and benefit cuts in the future."
Trump is not comfortable with that, however, and is instead driving the conversation on the "one favored nation" policy talks, which are "serious" but still in the early stages, according to the report.
"Trump is definitely not convinced on reductions in Medicaid spending," an outside adviser told Politico. "His own instincts are that politically it's not good, and Trump's political instincts are pretty good."
Mark Swanson ✉
Mark Swanson, a Newsmax writer and editor, has nearly three decades of experience covering news, culture and politics.
© 2025 Newsmax. All rights reserved.