Under pressure from the White House, Big Pharma has been touting “discounts” via Direct to Consumer (DTC) websites. Meanwhile, the Trump administration promises to unveil its own prescription website, immodestly named TrumpRx, in 2026. Prescription drug prices obviously are still too high, though President Biden’s Inflation Reduction Act (IRA) of 2022 was beginning to make headway in bringing them down. Unlike Biden’s IRA, these latest gestures by Big Pharma and the Trump Administration should be viewed with a healthy dose of skepticism.
Last month, drugmaker AstraZeneca launched a new direct-to-consumer (DTC) website to sell three popular drugs to customers with no insurance at lower-than-list prices – Farxiga, Flumist and AirSpura. Shortly afterwards, the CEO of Pfizer appeared at a White House event to announce that company would make certain drugs available to Medicaid beneficiaries at lower-than-list prices.
It is unlikely that ‘discounts’ offered by Big Pharma and “TrumpRx” website are actually a good deal for consumers . As Yahoo!News reports, some experts have characterized TrumpRx as a “gimmick” that “is not going to help the average person, particularly those who purchase prescription drugs through their insurance plans.” Experts worry that the discounts on TrumpRx won’t offset the Trump tariffs on drugs, which will raise consumers’ prices, not lower them.
Health care advocates also are skeptical of Big Pharma’s own Direct to Consumer sites. A case in point is AstraZeneca’s announcement that the diabetes drug, Farxiga, will be sold for $182 per month on its AstraZeneca Direct website. But for Medicare beneficiaries, the price of Farxiga is already much lower, averaging $39 per month, thanks to the Inflation Reduction Act.
For those who don’t have insurance (or who have skimpy insurance) it’s unclear whether the industry’s Direct to Consumer websites will be genuinely helpful. Workers living paycheck-to-paycheck still may not be able to afford hundreds of dollars or more per month for any single prescription. People with employer-sponsored drug coverage will need to determine whether purchases from a pharmaceutical DTC website — or from “TrumpRx” — actually count toward annual deductibles and out-of-pocket spending maximums.
The diabetes medication Farxiga is $182/mo. on AstraZeneca’s ‘discount site,’ but it’s only $39/mo. for Medicare Part D beneficiaries, thanks to Biden’s Inflation Reduction Act
Biden’s Inflation Reduction Act contained well-considered measures that were beginning to work (See the $39 per month for Farxiga). For the first time, the IRA empowered Medicare to negotiate prices with Big Pharma. It also included penalties for manufacturers that raise prices above the inflation — and a $2,000 cap on out-of-pocket costs for patients in Medicare Part D.
This is a far better approach than Trump’s efforts to coax drug companies into lowering prices by threatening tariffs. During both of his terms in office, Trump’s actions on prescription drug pricing have always seemed more performative than serious. There also is a certain smoke-and-mirror synergy between Trump and Big Pharma. Drugmakers can conjure any list price (or retail price) for their products in the U.S. market, making the concept of a ‘discount’ somewhat sketchy. Manufacturers promising to offer 50% discounts next year could simply double their prices on January 1, rendering the discount meaningless.
Biden’s Inflation Reduction Act resulted in real cost savings for seniors
What Trump would posit as progress on drug pricing reform may, in reality, represent backsliding. Trump’s Unfair, Ugly Bill diluted the Inflation Reduction Act’s drug negotiation powers — giving the government less leverage over Big Pharma. Meanwhile, it is unclear how robustly the administration will implement the next round of prescription drug price negotiations. All told, none of the latest news is reassuring for seniors or anyone else who depends on life-saving medications — but struggles to afford them. It remains to be seen whether TrumpRx will truly save anyone money, or whether it will join Trump Sneakers, Trump Steaks, and Trump University in ignobility.
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