Drug Companies Raise Prices Despite Deals
January 2026: Sixteen major drug companies, despite making deals with the Trump administration to lower drug prices, raised prices on some of their drugs. These deals were intended to help Americans pay less for medicine and make other wealthy countries pay more.
Key Findings
- 872 Brand-Name Drugs: In just the first two weeks of 2026, these companies raised prices on 872 brand-name drugs.
- Serious Conditions: These drugs treat serious conditions such as cancer, heart failure, and diabetes.
- COVID Shots: Even the price of some COVID shots went up.
- Average Increase: The price increases were about 4% on average, similar to last year's increases.
Company-Specific Actions
- Pfizer:
- Raised prices on 72 products.
- Included a 15% increase on their COVID shot.
- Claims increases are small and necessary for research and other costs.
States that prices insurance companies pay have gone down.
- Merck:
- Raised prices on 18 products.
- Claims price increases are responsible and reflect the value of their drugs.
- Does not specify how this aligns with their deal with the administration.
Price Cuts
- Medicare Negotiations: Four drugs part of Medicare's drug price negotiations saw significant drops.
- Fiasp (Insulin Product): 75% price cut.
- Other Drugs: Farxiga, Jardiance, and Eliquis also saw price drops.
- Uncertainty: It's unclear if these cuts are due to Medicare negotiations or other factors.
White House Response
The White House asserts that list prices do not matter. They claim that real discounts are going to Medicaid and people who pay cash for their drugs. However, most people do not pay the list price. Insurance companies and middlemen negotiate lower prices, so these deals may not help most people.
Uncertainty About Deals
The details of the deals made with the Trump administration are not public. Officials state that companies promised discounts for Medicaid and lower prices for future drugs in other countries. However, these deals do not affect most people's drug prices. It remains unclear if these deals will truly help lower drug prices for most Americans.
