What changes does The Great Healthcare Plan propose for prescription drug pricing?
The January 2026 plan outlines strategies to lower drug prices for Americans. It includes codifying Most-Favored-Nation deals to match prices from other countries and expanding the availability of over-the-counter medicines. These changes aim to increase price transparency and reduce the need for costly doctor visits for common prescriptions.
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The Great Healthcare Plan proposes to slash prescription drug prices by codifying Most-Favored-Nation deals that match international pricing and by expanding the availability of over-the-counter medicines.
Here are the key practical changes outlined in the January 2026 plan:
- International Price Matching: The plan seeks to codify voluntary Most-Favored-Nation agreements, allowing Americans to access the same lower drug prices paid in other countries. This builds on previous executive orders aimed at reducing costs for essentials like insulin.
- Over-the-Counter Expansion: Many verified, safe pharmaceutical drugs would become available for over-the-counter purchase. This shift aims to increase consumer choice and price transparency while reducing the need for costly and time-consuming doctor’s visits for common ailments.
- Preserving Voluntary Deals: Existing voluntarily negotiated deals involving the Department of Health and Human Services and the Centers for Medicare & Medicaid Services (HHS/CMS) will be grandfathered in to ensure continuity for current beneficiaries.
- Direct Subsidy Allocation: The plan proposes stopping the flow of billions in taxpayer-funded subsidy payments to large insurance companies. Instead, these funds would be sent directly to eligible Americans to purchase the health insurance of their choice, arguably increasing value for the end consumer.
- Cost-Share Reduction Funding: A dedicated cost-sharing reduction program will be funded for healthcare plans. This initiative is projected to save taxpayers at least $36 billion and reduce premiums on the most common exchange plans by more than 10%.
- Eliminating PBM Kickbacks: The plan targets the elimination of kickback payments from pharmacy benefit managers to large brokerage middlemen, which are criticized for deceptively raising the cost of health insurance.
These measures collectively aim to lower out-of-pocket costs and increase competition within the pharmaceutical market.
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