After decades of prescription drug prices rising faster than inflation, new data from the Bureau of Labor Statistics offered some rare positive headlines on affordability. In 2025, prescription drug prices fell by an average of more than 3%, the first time this has happened since 1963. It’s good news for patients across America, and the outlook for 2026 price adjustments is equally positive. Prices have declined every month so far this year, a clear sign of market progress. Less clear is what’s driving the decline in prices and who can take credit for it — and in Washington, someone always wants to take credit.
If a Democrat were still in the White House, they would no doubt point to the Inflation Reduction Act, which took full effect this January. The Trump administration wasted no time linking the drop in drug prices to its so-called most-favored-nation policy, a top priority of the president since the February State of the Union address, in which he called on Congress to codify MFN into law.
