‘Most Favored Nation’ Pricing May Not Favor PBMs, Experts Say
-
May 16, 2025
President Donald Trump’s administration is aiming to revive its so-called most favored nation (MFN) policy to reduce drug prices in the U.S. — a move that could lower costs for insurers but have far-reaching consequences for PBMs, experts tell AIS Health, a division of MMIT. However, some analysts are skeptical that the policy changes Trump is calling for will ever come to fruition.
Trump’s May 12 executive order instructs HHS Secretary Robert F. Kennedy Jr., CMS Administrator Mehmet Oz, M.D., and the Assistant to the President for Domestic Policy Vince Haley to work with drug manufacturers to negotiate prices in line with those of other developed nations. If deals are not reached within 30 days of the signing of the order, the HHS secretary will turn to the rulemaking process to set MFN pricing. The order also allows HHS to set direct-to-consumer purchasing through drug manufacturers at MFN pricing. And it paves the way for importation of medications — a move that comes as the administration considers pharmaceutical tariffs.
Read more
© 2025 MMIT
The Latest
