Trump Revives ‘Most Favored Nation’ Rule to Lower Prescription Drug Prices
In a bold move to tackle America’s ongoing prescription drug affordability crisis, former President Donald Trump has pledged to reinstate his controversial “Most Favored Nation” executive order if elected. This policy aims to slash drug prices for Medicare recipients by linking them to the lowest prices paid by other wealthy nations.
As reported by the Associated Press, Trump’s proposal would revive a 2020 initiative that was blocked by the courts after facing intense opposition from pharmaceutical companies and healthcare groups. The concept, rooted in international price indexing, aims to end what Trump calls the “global freeloading” on American innovation by forcing drugmakers to offer the same—or lower—prices in the U.S. as they do abroad.
Key Highlights of the Proposed Executive Order
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Price Benchmarking: The policy would mandate that Medicare Part B reimburses only up to the lowest price paid by a select group of developed countries.
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Targeting High-Cost Drugs: Focus would primarily be on some of the most expensive biologics and specialty medications.
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Potential Savings: The Trump campaign claims the move could result in billions of dollars in savings for Medicare and beneficiaries.
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Industry Backlash Expected: The pharmaceutical industry has already signaled strong opposition, citing concerns over innovation, access to drugs, and economic impacts.
Implications for Patients, Medicare, and the Healthcare Market
If implemented, the ‘Most Favored Nation’ pricing model could deliver significant relief to seniors facing high out-of-pocket costs under Medicare Part B. However, stakeholders including insurers, benefits managers, and healthcare providers would need to adapt to a new era of pricing controls, which could disrupt current contracting and rebate structures.
It also raises concerns over drug access, as pharmaceutical companies may respond by limiting supplies or pulling certain products from the U.S. market.
How American Exchange Can Help You Navigate Drug Pricing Changes
At American Exchange, we understand the complexity and volatility of healthcare regulations—especially when it comes to prescription drug pricing reforms. Our advanced enrollment, benefits management, and compliance solutions help ensure you are ready for whatever policy changes come next.
Stay ahead of regulatory shifts and protect your clients from disruptions. Schedule a demo today: https://enroll.americanexchange.com/demo
Source: AP News, “Trump revives ‘Most Favored Nation’ plan to lower prescription drug prices,” 2025. Available at: https://apnews.com/article/trump-prescription-drugs-prices-most-favored-nation-4c620a32ccd193b793ba1558f3fe93e0
