President Trump on July 31 sent letters to 17 major drug manufacturers demanding they comply with the administration’s “most favored nation” (MFN) drug pricing policy within the next 60 days.
The MFN policy, first announced in a May 12 executive order, calls on manufacturers to offer U.S. patients drug prices no higher than those charged in other developed nations.
The letters and accompanying public fact sheet direct manufacturers to provide MFN prices to all Medicaid patients, prohibits them from offering lower prices for new drugs abroad, and warn that the administration will “deploy every tool in [its] arsenal” against manufacturers that fail to comply.
The administration proposes to incentivize participation by allowing compliant manufacturers to sell products directly to patients, bypassing pharmacy benefit managers. White House officials also signaled openness to using trade policy to support increased overseas revenue for manufacturers that reduce domestic prices.
Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.
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