This week, the Trump Administration issued a new Executive Order introducing a “Most Favored Nation” (MFN) policy aimed at reducing prescription drug prices in the United States. The MFN policy seeks to align U.S. drug prices with those paid in other developed countries, where Americans often pay two to three times more for the same medications. The order directs federal agencies to set price reduction targets for prescription drugs and, if negotiations with manufacturers do not yield sufficient progress, to implement MFN pricing through regulatory measures. Unlike previous efforts, this order is broader in scope and is expected to impact not only Medicare but also Medicaid and private insurance markets.
While the administration claims this policy could reduce drug prices by as much as 59% to 90%, health policy experts remain uncertain about its real-world impact, including which drugs will be affected, how implementation will unfold, and whether patients will see meaningful savings at the pharmacy counter. Previous attempts to implement similar policies have faced legal and logistical challenges.
At Generation Patient, we are firmly committed to lowering drug costs for all patients, with a special focus on young adults living with chronic and lifelong conditions. We recognize that the MFN Executive Order is primarily oriented toward government programs, but its effects on commercial insurance and out-of-pocket costs for patients remain unclear. We are concerned about the potential for unintended consequences, such as price increases in the commercial market or disruptions in patient access.
We urge the Trump Administration to engage directly with patient communities and public stakeholders to fully understand the needs and experiences of those affected by high drug prices. It is critical that any policy solution addresses the root causes of high costs, including the need for patent reform to promote competition and increase access to affordable generics and biosimilars.
Generation Patient remains committed to advocating for sustainable, patient-centered solutions to the drug pricing crisis. We will continue to monitor the implementation of the MFN policy and encourage feedback from our community at admin@generationpatient.org. We call on policymakers to prioritize reforms that ensure lower drug prices for all patients, without shifting costs or limiting access.