NEW YORK (AP) — Pharmaceutical companies have agreed to slash the Medicare prices for 15 prescription drugs after months of negotiations, reductions that are expected to produce billions in savings for taxpayers and older adults, the Trump administration said.
But the net prices it unveiled for a 30-day supply of each drug are not what Medicare recipients will pay at their pharmacy counters, since those final amounts will depend on each individual’s plan and how much they spend on prescriptions in a given year.
Health Secretary Robert F. Kennedy Jr. touted the deals as part of the administration’s efforts to address affordability concerns among Americans. The Medicare drug negotiation program that made them possible is mandated by law and began under President Joe Biden’s administration.
“President Trump directed us to stop at nothing to lower health care costs for the American people,” Kennedy said in a statement Tuesday evening. “As we work to Make America Healthy Again, we will use every tool at our disposal to deliver affordable health care to seniors.”
The announcement marks the completion of a second round of negotiations under a 2022 law that allows Medicare to haggle over the price it pays on the most popular and expensive prescription drugs used by older Americans, bringing the total number of negotiated drug prices to 25. The new round of negotiated prices will go into effect in 2027. Reduced prices for the inaugural round of 10 drugs negotiated by the Biden administration last year will go into effect in January.
The latest negotiated prices apply to some of the prescription medications on which Medicare spends the most money, including the massively popular GLP-1 weight-loss and diabetes drugs Ozempic, Rybelsus and Wegovy. Some of the other drugs involved in the negotiations include Trelegy Ellipta, which treats asthma; Otezla, a psoriatic arthritis drug; and various drugs that treat diabetes, irritable bowel syndrome and different forms of cancer.
Dr. Mehmet Oz, Centers for Medicare and Medicaid Services administrator, said the administration delivered “substantially better outcomes for taxpayers and seniors in the Medicare Part D program” than the previous year's deals.
Under the first round of Medicare price negotiations, the Biden administration said the program would have saved about $6 billion on net covered prescription drug costs, or about 22%, if it had been in effect the previous year. The Trump administration said its latest round would have saved the government about $8.5 billion in net spending, or 36%, if it had been in effect last year.
It’s unclear exactly how much money the newly announced deals could save Medicare beneficiaries when they are buying prescription drugs at the pharmacy because those costs are determined by various individual factors.
A new rule that kicked off this year also caps out-of-pocket drug costs for Medicare beneficiaries at $2,000, giving some relief to older adults affected by high-cost prescriptions. The administration said estimated out-of-pocket savings for Medicare beneficiaries with drug plans is about $685 million.
Spencer Perlman, director of health care research at Veda Partners, said the Trump administration's improved outcomes probably resulted from the mix of drugs being negotiated and lessons learned from the first year of negotiations.
Net drug prices are proprietary, he said, but “if we take the administration at their word, I think it demonstrates that they have secured meaningful price concessions for seniors, meaning the Medicare Drug Price Negotiation Program is working as intended.”
The GLP-1 weight-loss drugs that were part of the negotiations have been especially scrutinized for their high out-of-pocket costs. Yet it’s still unclear to what extent Medicare beneficiaries who want to use the drugs to treat obesity will be able to do so.
Medicare has long been prohibited from paying for weight-loss treatments, but a separate deal recently announced between the Trump administration and two pharmaceutical companies included plans for a pilot program that will expand coverage for the drugs to additional high-risk obese and overweight people.
The Trump administration this year has also negotiated several unrelated deals with drug companies to lower the cost of their products for the wider population.
Pharmaceutical companies, meanwhile, have sued over the Medicare drug negotiations enabled by the 2022 Inflation Reduction Act and remain opposed to them.
“Whether it is the IRA or MFN, government price setting for medicines is the wrong policy for America," Alex Schriver, senior vice president of public affairs at the Pharmaceutical Research and Manufacturers of America, or PhRMA, said in a statement. “These flawed policies also threaten future medical innovation by siphoning $300 billion from biopharmaceutical research, undermining the American economy and our ability to compete globally.”
Next year, Medicare will negotiate prices for another round of 15 drugs, including physician-administered drugs for the first time.
U.S. Secretary of Health and Human Services Robert F. Kennedy Jr. speaks during the Western Governors' Association meeting Thursday, Nov. 20, 2025, in Scottsdale, Ariz. (AP Photo/Rebecca Noble)
WASHINGTON (AP) — U.S. President Donald Trump has been fuming about NATO, musing about leaving the alliance, ratcheting up his criticism of European leaders and exposing a wider rift in the trans-Atlantic alliance — this time over the Iran war.
“NATO treated us very badly, and you have to remember it because they’ll be treating us badly again if we ever need them,” Trump said Wednesday at a private White House lunch for the upcoming Easter holiday that was posted online by a Business Insider reporter.
The president also suggested in an interview to The Telegraph newspaper in the U.K., published Wednesday, that he could potentially try to leave the alliance.
Yet in his televised Wednesday evening address to the American people about the Iran war, Trump chose not to mention NATO by name, suggesting only that countries that depend on oil flowing through the Strait of Hormuz “must grab it and cherish it” because the U.S. would not.
Trump's tension over NATO reflects the potentially dangerous consequences of breaking up the alliance, the limits on his own power to do so and the careful mending of the relationship performed by fellow world leaders. But one certainly is that Trump's displeasure with NATO appears to be a feature of his presidency, rather than an issue that can be easily settled.
Congress passed legislation in 2023 that would prevent any president from pulling out of NATO without its approval. The Trump administration, during his first term, had insisted the president had such authority on his own. It’s unclear whether Trump would challenge in any way the new law, which is the first of its kind and with the NATO provision specifically championed at the time by Trump's secretary of state, Marco Rubio, who was a Florida senator at the time.
There are efforts under way to reinforce America's relationship with NATO, with its secretary-general, Mark Rutte, scheduled to visit Washington next week. The visit by Rutte was confirmed by a White House official who was not authorized to comment on the yet to be formally announced visit and spoke on the condition of anonymity.
U.K. Prime Minister Keir Starmer said his government was “fully committed to NATO” and called it “the single most effective military alliance the world has ever seen.”
Before a Trump speech later Wednesday, U.S. Sen. Mitch McConnell, a Kentucky Republican, and Sen. Chris Coons, a Delaware Democrat, said in a joint statement that “NATO is the most successful military alliance in history” and stressed that the Senate “will continue to support the alliance for the peace and protection it provides" the United States, Europe and the world.
Many European leaders have felt political pressure over the war, which faces opposition in their countries and has sent petroleum prices soaring as Iran has effectively shut the Strait of Hormuz, the narrow waterway between Iran and Oman through which about one-fifth of the world’s oil passes.
The U.K. is working on plans that could help assuage Trump, and Starmer said military planners will work on a postwar security plan for the Strait.
On Thursday, British Foreign Secretary Yvette Cooper will host a virtual meeting of 35 countries that have signed up to help ensure security for shipping in the Strait — after the fighting ends.
Iulia-Sabina Joja, a senior fellow at the Middle East Institute, alluded to Trump's exhortation Tuesday for allies to “go get your own oil” in a social media post insisting it wasn't America's job to secure the Strait.
“The Europeans are not keen to go into an active warfare situation, to so-called ‘get’ their energy out of the Strait,” said Joba, a former deputy project manager at NATO Allied Command Transformation in Virginia.
As energy prices have spiked, Trump has called NATO allies “cowards” for not sending their military ships to the strait. It's an amplification of his message since his first term that European partners should assume greater responsibility for their own security.
Speaking Tuesday on Fox News, Rubio said, “I do think, unfortunately, we are going to have to reexamine whether or not this alliance that has served this country well for a while is still serving that purpose.”
Rubio raised questions with interviewer Sean Hannity about whether NATO has “become a one-way street where America is simply in a position to defend Europe — but when we need the help of our allies, they’re going to deny us basing rights and they’re going to deny us overflight.”
The fraying of NATO could weaken the alliance’s deterrence, particularly with Russia: It seeks to limit conflict by having Russian President Vladimir Putin believe that NATO would retaliate if he decides to one day expand Moscow's war in Ukraine.
NATO is built on Article 5 of its founding treaty, which pledges that an attack on any one member will be met with a response from them all.
As the Iran war has spread, missiles and drones have been fired toward NATO member Turkey and a British military base on Cyprus, fueling speculation about what might prompt NATO to trigger its collective security guarantee and come to their rescue.
The alliance hasn't intervened or signaled any plan to do so. Rutte — who has voiced support for Trump and Washington's role in the alliance — has been focusing mostly on the Russia-Ukraine war since Ukraine borders four NATO countries.
NATO operates uniquely by consensus. All 32 countries must agree for it to make decisions, so political priorities play a role. Even invoking Article 5 requires agreement among the allies. Turkey or the U.K. can't trigger it alone.
European leaders have called for the Middle East conflict to stop and want the U.S. and Iran to return to negotiations over Tehran's nuclear program, which Washington and Israel see as a threat.
The vocal opposition in Europe to Trump's war against Iran has started to turn into action.
Spain has closed its airspace to U.S. planes involved in the war.
Early last month, France agreed to let the U.S. Air Force use a base in southern France after receiving a “full guarantee” from the United States that planes not involved in carrying out strikes against Iran would land there.
The government of Italian Premier Giorgia Meloni, long seen as one of the European Union leaders with the best personal ties to Trump, denied permission for U.S. bombers to land at the Sigonella air base in Sicily for one mission related to the Middle East.
Franco Pavoncello, a professor of political science at Rome’s John Cabot University, said that decision might cost Meloni a lot of her political capital in Washington.
But he said, “The Italian government could not be seen by the European allies as too submissive to American interests, as it would have very negative repercussions both at home and in the EU.”
U.S. relations with Europe had already soured in recent months over Trump's call for Greenland — a semiautonomous territory of stalwart NATO ally Denmark — to become part of the United States, prompting many EU countries to rally behind Copenhagen.
Jill Lawless reported from London and Jamey Keaten from Geneva. Lorne Cook in Brussels, Giada Zampano in Rome, Sam McNeil in Dubai, United Arab Emirates, and Matthew Lee in Washington contributed to this report.
NATO Secretary General Mark Rutte speaks during the launch of the NATO Secretary General's Annual Report for 2025 at NATO headquarters in Brussels, Thursday, March 26, 2026. (AP Photo/Virginia Mayo)
People watch a TV screen showing a live broadcast of U.S. President Donald Trump's speech at the Seoul Railway Station in Seoul, South Korea, Thursday, April 2, 2026. (AP Photo/Ahn Young-joon)
In this image made with a long exposure, President Donald Trump speaks about the Iran war from the Cross Hall of the White House on Wednesday, April 1, 2026, in Washington. (AP Photo/Alex Brandon, Pool)
President Donald Trump speaks about the Iran war from the Cross Hall of the White House on Wednesday, April 1, 2026, in Washington. (AP Photo/Alex Brandon, Pool)
President Donald Trump answers questions from reporters after signing an executive order in the Oval Office of the White House Tuesday, March 31, 2026, in Washington. (AP Photo/Alex Brandon)
Britain's Prime Minister Keir Starmer speaks during a press conference at Downing Street in London, Wednesday, April 1, 2026. (AP Photo/Frank Augstein, Pool)
Britain's Prime Minister Keir Starmer speaks during a press conference at Downing Street in London, Wednesday, April 1, 2026. (AP Photo/Frank Augstein, Pool)
Britain's Prime Minister Keir Starmer speaks during a press conference at Downing Street in London, Wednesday, April 1, 2026. (AP Photo/Frank Augstein, Pool)
