For the third month in a row, U.S. consumers saw lower prices at the pharmacy counter, with May’s data showing a 0.9% dip in prescription drugs and a 0.8% drop in over‑the‑counter (OTC) medicines. The declines come as the Trump administration’s Most Favored Nation (MFN) pricing policy gains traction, according to government figures relased on Wednesday.

May 0.9% Prescription Price Drop Extends Three‑Month Trend

Prescription drug prices slipped 0.9% in May, pushing the cumulative three‑month decline to 2.39% since February, as reported by the administration’s data release. Over the past year, the sector is down 2.0%, a modest but notable shift for a market long criticized for price volatility. The MFN approach, which forces manufacturers to match the lowest prices paid by other wealthy nations, is credited with tightening the pricing floor.

OTC Meds Fall 0 .8% in May, Signaling Competitive Relief

Over‑the‑counter medications, which are not subject to direct government price controls, also recorded a 0.8% decrease in May, bringing the three‑month cumulative drop to 2.68% and a year‑over‑year decline of 2.5%.. This suggests that competition, rather than regulatory mandates, is driving the downward pressure, according to the same government data.

Health Insurance Index Down 6.4% YoY May Reflect Drug Savings

The health‑insurance price index fell 6.4% compared with a year ago, a movement that may be linked to the falling drug costs. Analysts note that lower pharmacy expenses can translate into reduced premiums and out‑of‑pocket costs for insured Americans, though the exact pass‑through mechanism remains opaque.

Drug Prices Down 2.39% Since February Amid Rising CPI

Even as the overall Consumer Price Index climbed 4.2% over the past year—driven largely by a 23.5% surge in energy costs—drug prices have moved in the opposite direction. grocery prices rose only 0.1% in May, and other categories such as new cars and smartphones saw price drops, highlighting a mixed inflation landscape.

Who Will Benefit Most from the MFN Policy?

While the data show price reductions, it is unclear how savings are distributed across income groups, geographic regions, and insurance types. Critics argue that manufacturers may offset lower list prices with higher rebates, a practice not captured in the headline figures. according to the report, the MFN strategy aims to eliminate the disparity where other wealthy nations pay less for the same drugs, but the real‑world impact on patient out‑of‑pocket costs remains to be quantified.