AbbVie, Trump Reach Drug Pricing Deal That Could Cut Costs for Older Americans
You can delay a vacation. You can skip a dinner out. But you cannot skip insulin, arthritis medication, or heart and thyroid drugs. That is a reality of life.
For older Americans living on a fixed income, prescription drugs have become one of the fastest-growing threats to retirement security. The administration has been pushing for lower drug prices and taking steps to achieve that goal.
If manufacturers do not move to most-favored-nation pricing, we will use every tool available to protect American families from abusive drug pricing. — HHS Secretary Robert F. Kennedy Jr.
That is why a major new agreement between AbbVie and the Trump administration, announced in January 2026, matters to you more than almost any other health policy decision this year.
The deal ties lower prices and direct consumer access to protection from tariffs and future federal price mandates.
What AbbVie Agreed to Do
Under the voluntary agreement, AbbVie will:
- Offer “low prices” for its drugs through Medicaid
- Sell key medications directly to consumers through TrumpRx, a new federal online drug platform launching in 2026
- Invest $100 billion over 10 years in U.S. research, development, and manufacturing
- Expand domestic drug production, including facilities in Arizona and Illinois
In return, the Trump administration agreed to exempt AbbVie from:
- 100 percent tariffs on imported branded pharmaceuticals
- Future price mandates tied to federal drug pricing policy
AbbVie CEO Robert Michael said the deal aligns the company with the administration’s strategy.
AbbVie is following President Trump’s call to action by reaching this agreement, allowing us to collectively move beyond policies that harm American innovation. — Robert Michael, AbbVie CEO.
Villanova University professor Kathleen Iacocca, quoted in the Chicago Tribune, called the move strategically smart.
Something that seems more valuable than even the tariff relief is it gives drugmakers better relationships with the government, as the government is clearly moving forward with pricing controls. It’s better to play with them than try to be against them. — Professor Kathleen Iacocca.
AbbVie is Not Alone
AbbVie is now part of a growing list of pharmaceutical giants that have signed similar pricing agreements with the Trump administration tied to most-favored-nation pricing, which forces U.S. prices to match the lowest prices paid in comparable countries.
Companies that have already reached deals include:
- Amgen
- Bristol Myers Squibb
- Boehringer Ingelheim
- Genentech (Roche)
- Gilead
- GSK
- Merck
- Novartis
- Sanofi
- Pfizer
- Johnson & Johnson
The White House confirmed in December that nine major drugmakers signed agreements to provide MFN-level pricing to Medicaid and to patients buying drugs directly through TrumpRx.
What TrumpRx Means for You
TrumpRx is a new federal online marketplace that allows Americans to buy medications directly from manufacturers, bypassing insurance companies, pharmacy benefit managers, and pharmacy markups.
For many older adults, that matters more than any government negotiation.
According to policy analysts, Medicaid patients and cash-pay seniors will see the fastest price drops. Private insurance users may see slower changes because their copays are tied to insurance contracts rather than retail pricing.
This creates a powerful new option for:
- Early retirees
- Seniors in the Medicare Part D coverage gap
- People paying out of pocket for specialty drugs
AbbVie Drugs That Matter Most to Older Adults
AbbVie’s product lineup hits the core of aging medicine.
- Humira: Treats rheumatoid arthritis, Crohn’s disease, ulcerative colitis, and autoimmune disorders that cause pain and disability.
- Skyrizi: Used for plaque psoriasis and psoriatic arthritis, conditions linked to inflammation and cardiovascular risk.
- Rinvoq: Used when arthritis and autoimmune disease fail older therapies. It often keeps seniors mobile and out of nursing homes.
- Synthroid: A thyroid replacement drug is used by millions of older adults. Untreated hypothyroidism leads to fatigue, heart disease, and cognitive decline.
- Alphagan and Combigan: Used for glaucoma, a leading cause of blindness in people over 60.
These are not optional medications. They are what allow people to remain independent.
Why AbbVie’s U.S. Investment is Critical
AbbVie’s $100 billion commitment to U.S. manufacturing and research also addresses a growing crisis: drug shortages.
More U.S. production means:
- Fewer supply disruptions
- Less vulnerability to trade wars
- More stable access for seniors who depend on these drugs every day
AbbVie already employs about 29,000 people in the United States and is expanding its footprint in Arizona and Illinois.
What You Should Watch Next
If you or someone you love uses Humira, Skyrizi, Rinvoq, Synthroid, or glaucoma drugs, you should compare TrumpRx pricing when it launches against your Medicare or insurance plan.
You may find buying directly costs less than using insurance. Medicare and prescription drugs are not the only things retired people need to be concerned about.
Long-term care has also become a major concern due to the effects of longevity. Medicare will not pay for long-term care beyond short-term skilled services. Medicaid will pay for long-term care, but only when you have limited financial resources.
If you are planning for your retirement and the impact of aging, you should also be aware that long-term care is not covered unless you have Long-Term Care Insurance or qualify for Medicare.
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