Overview

• President Trump's plan seeks to cap Medicaid drug prices at the lowest rates charged in other developed countries.
• The Wall Street Journal's editorial board has strongly criticized the proposal, calling it his 'worst idea since tariffs.'
• Critics argue the plan offers minimal savings, as Medicaid already benefits from significant drug rebates, and drugs account for less than 4% of its spending.
• The board warned the policy could lead drug manufacturers to withdraw from Medicaid, reducing patient access to critical treatments.
• Concerns were raised that adopting such price controls could set a precedent for Democrats to extend them to Medicare and private insurance in the future.