Trump Didn’t Lower Your Drug Prices
After decades of prescription drug prices rising faster than inflation, new data from the Bureau of Labor Statistics offered some rare positive headlines on affordability. In 2025, prescription drug prices fell by an average of more than 3%, the first time this has happened since 1963. It’s good news for patients across America, and the outlook for 2026 price adjustments is equally positive. Prices have declined every month so far this year, a clear sign of market progress. Less clear is what’s driving the decline in prices and who can take credit for it — and in Washington, someone always wants to take credit.
TL;DR
- Prescription drug prices fell by over 3% in 2025, the first decrease since 1963, with continued declines in 2026.
- Market competition, especially for anti-obesity drugs like GLP-1s, is a primary driver of these price reductions, not solely government policy.
- Government initiatives like TrumpRX are described as compilation websites of existing deals, and Most-Favored-Nation (MFN) policies are not yet fully enacted.
- The FDA's decision to approve fewer drugs, including costly gene therapies, in 2025 contributed to short-term lower drug expenditures.
- Despite falling drug prices, overall healthcare costs, including premiums and services, are increasing due to factors like 'upcoding' stimulated by the No Surprises Act.
- Four out of every five dollars spent in U.S. healthcare are for services, not prescriptions.
- The article advocates for policies that enable and incentivize medical and pharmaceutical innovations, suggesting MFN policy does not achieve this.