Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients
May 15, 2025
May 15, 2025
Summary
Aims to lower prescription drug costs for Americans by making sure they pay the lowest price offered to any other developed country.
What problem does this solve?
Americans often pay much more for the same prescription drugs than people in other developed nations, which helps fund global drug research. This order directs government agencies to ensure Americans pay the same low prices for drugs as other countries, ending this unfair system.
Who does this affect?
- American patients
- Pharmaceutical companies
- Government healthcare programs
What does this order do?
Sets price targets for drug companies
Requires the Secretary of Health and Human Services to tell drug makers the 'most-favored-nation' price they should be charging American patients.
Threatens to impose price controls
If drug companies do not lower prices, the government will propose rules to force them to adopt most-favored-nation pricing.
Considers allowing drug importation
Allows for the possibility of importing cheaper prescription drugs from other developed countries if prices in the U.S. do not come down.
Targets anti-competitive practices
Directs the Attorney General and the Federal Trade Commission to take legal action against drug companies for any unfair business practices that keep prices high.
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Addressing Foreign Nations Freeloading on American-Financed Innovation
Addresses foreign price suppression
Directs trade officials to ensure other countries are not unfairly forcing drug prices down, which causes higher prices in the U.S.
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Enabling Direct-to-Consumer Sales to American Patients at the Most-Favored-Nation Price
Facilitates direct-to-consumer sales
Tells the Secretary of Health and Human Services to help create programs for drug companies to sell directly to patients at the lowest international price.
What is the real world impact?
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Ensures fair drug prices for Americans
Stops Americans from paying significantly more than people in other developed countries for the same medications, ending what the order calls 'global freeloading'.
When does this start?
This order sets a key deadline for the government to begin addressing high drug prices.
Communicate price targets to drug makers
Within 30 days of May 12, 2025, the Secretary of Health and Human Services must communicate price targets to drug companies.