U.S. President Donald Trump and Germany’s Merck KGaA announced a deal on Thursday to reduce the cost of certain drugs used in in-vitro fertilization (IVF), in exchange for protection from future tariffs. According to senior administration officials, the price cuts could save families around $2,200 per IVF cycle.
The agreement follows Trump’s February executive order aimed at expanding access to IVF and making fertility treatments more affordable. As part of his broader push to lower drug prices in the U.S., Trump has also reached similar arrangements with Pfizer and AstraZeneca, offering tariff relief in return for reduced prescription costs in the Medicaid program for low-income Americans.
Merck said when all three drugs are used in IVF, patients will get a combined discount of 84% off list price."We're also taking historic steps to vastly expand access to insurance coverage for fertility care, including IVF, something that, as you know, was not covered," Trump said from the Oval Office.
Merck said it had made a deal with the U.S. Commerce Department to exclude its drugs from industry-specific tariffs, if those are introduced, provided the company invests in U.S. manufacturing and research.
To further promote IVF access, the U.S. Departments of Treasury, Labor, and Health and Human Services plan to issue new guidance introducing an “employer benefit option” that encourages companies to provide IVF and infertility coverage to employees. This guidance will also allow small businesses to offer infertility benefits separately, a move the White House expects will widen coverage.
Officials clarified that the initiative does not include federal subsidies or mandates for employers to participate.