In a May 12 executive order, President Trump directed federal agencies to implement policies to tie prescription drug prices to international price targets and to facilitate direct to consumer sales at the most favored nation (MFN) price. The executive order instructs the Secretary of the Department of Health and Human Services (HHS) to communicate MFN price targets to drug manufacturers within 30 days of the executive order. The executive order noted that if “significant progress” toward MFN pricing is not achieved, the HHS may take additional steps, including issuing a proposed rule and working with Congress to allow for drug importation for certain drugs. The executive order does not mention which drugs would be subject to MFN pricing.
In 2020, the Trump administration issued a Most Favored Nation Moden interim final rule that would have set Medicare reimbursement rates for 50 Part B drugs at an international reference price through a payment model. The interim final rule was invalidated in court and later rescinded by the Biden administration [refer to Washington Highlights, Jan. 7, 2022].