Most Favored Nation Status Pricing

Extracted Attributes

• Definition

  A policy aligning U.S. drug prices with the lowest prices paid for the same drugs in other developed nations.

• Lead Agency

  U.S. Department of Health and Human Services (HHS).

• Target Programs

  Medicare Part B, Medicare Part D, and Medicaid.

• Benchmarking Criteria

  OECD countries with a per capita GDP that is 60 percent or more of the U.S. per capita GDP.

• Manufacturer Incentives

  Three-year suspension of potential pharmaceutical tariffs and commitments to over $150 billion in U.S. manufacturing investments.

• Implementation Mechanism

  Voluntary manufacturer agreements and the 'GENEROUS Model' for Medicaid rebates.

Timeline

• President Trump issues Executive Order 13948, 'Lowering Drug Prices by Putting America First,' the initial proposal for MFN pricing. (Source: https://www.congress.gov/crs-product/LSB11319)

  2020-09-13

• President Trump signs the Executive Order 'Delivering Most-Favored-Nation (MFN) Prescription Drug Pricing to American Patients'. (Source: https://www.whitehouse.gov/presidential-actions/2025/05/delivering-most-favored-nation-prescription-drug-pricing-to-american-patients/)

  2025-05-01

• CMS announces the 'GENEROUS Model' (GENErating cost Reductions fOr U.S. Medicaid) to provide MFN prices to state Medicaid programs. (Source: https://www.jonesday.com/en/insights/2025/12/most-favored-nation-drug-pricing-and-manufacturer-agreements)

  2025-11-06

• President Trump announces that 14 of the 17 largest pharmaceutical companies have signed voluntary MFN pricing agreements. (Source: https://www.drugdiscoverytrends.com/drug-companies-sign-most-favored-nation-deals-then-raise-prices-anyway/)

  2025-12-19

• Reports indicate that several MFN deal-signers, including Pfizer and GSK, raised prices on hundreds of branded medications. (Source: https://www.drugdiscoverytrends.com/drug-companies-sign-most-favored-nation-deals-then-raise-prices-anyway/)

  2026-01-01

Executive Order 14290

Executive Order 14290, titled "Ending Taxpayer Subsidization of Biased Media", is an executive order signed by U.S. president Donald Trump on May 1, 2025 to end federal funding for NPR (a radio network) and PBS (a television network) by the Corporation for Public Broadcasting (CPB) and by federal agencies, alleging biased news coverage in violation of the Public Broadcasting Act of 1967 (PBA) and that public funding for news programming was "not only outdated and unnecessary but corrosive to the appearance of journalistic independence" in the current U.S. media market. CPB, PBS, and NPR executives issued press releases arguing that the executive order was unlawful under the PBA and that the organizations would explore how to continue providing programming while challenging the order. On May 27, NPR and three public radio stations sued the Trump administration for ending their federal funding under the executive order, citing it as a violation of the First Amendment. On May 30, PBS sued the Trump administration for ending their federal funding under the executive order. Before the executive order was issued, the CPB filed a lawsuit against the Trump administration on April 28 after Trump attempted to fire three of the five members of the CPB's board of directors, while the CPB also filed a lawsuit against the Federal Emergency Management Agency (FEMA) in March 2025 for halting their funding under the Next Generation Warning System Grant Program within the Integrated Public Alert and Warning System. FEMA released the funds on April 24. On June 8, District of Columbia U.S. District Court Judge Randolph Moss ruled against a preliminary injunction requested by the CPB in its lawsuit against the attempted director removals since the CPB changed its by-laws afterward under the District of Columbia Nonprofit Corporation Act to prevent any authority, including the President of the United States, from removing a director without a two-thirds vote of the other directors, which allowed for the directors to keep their positions. On July 15, the Trump administration filed a separate lawsuit to remove the same CPB directors.

Web Search Results

• Most Favored Nation Drug Pricing and Manufacturer Agreements

  In 2025, the current administration renewed its efforts to implement MFN pricing in the United States. As of this writing, five manufacturers have entered voluntary agreements with the administration implementing MFN pricing. And on November 6, 2025, the Centers for Medicare and Medicaid Services ("CMS") announced a new payment model, "GENErating cost Reductions fOr U.S. Medicaid" ("GENEROUS Model"), that is designed to make MFN prices available to state Medicaid programs via manufacturer rebates. [...] In 2025, the current administration renewed its efforts to implement MFN pricing in the United States. As of this writing, five manufacturers have entered voluntary agreements with the administration implementing MFN pricing. And on November 6, 2025, the Centers for Medicare and Medicaid Services ("CMS") announced a new payment model, "GENErating cost Reductions fOr U.S. Medicaid" ("GENEROUS Model"), that is designed to make MFN prices available to state Medicaid programs via manufacturer rebates. [...] December 04, 2025 Newsletters Most Favored Nation or "MFN" drug pricing is a policy through which prescription drug prices in the United States are aligned with the lowest prices paid for the same drugs in other developed nations. Attempts to implement MFN drug pricing in the United States date back to 2020, when it was first proposed via executive order ("EO") by the first Trump administration. The 2020 MFN policy targeted Medicare Part B drugs and biologics but was never implemented as a result of successful legal challenges.

• Delivering Most-Favored-Nation Prescription Drug Pricing to ...

  Sec. 5. Establishing Most-Favored-Nation Pricing. (a) Within 30 days of the date of this order, the Secretary shall, in coordination with the Assistant to the President for Domestic Policy, the Administrator for the Centers for Medicare and Medicaid Services, and other relevant executive department and agency (agency) officials, communicate most-favored-nation price targets to pharmaceutical manufacturers to bring prices for American patients in line with comparably developed nations. (b) If, following the action described in subsection (a) of this section, significant progress towards most-favored-nation pricing for American patients is not delivered, to the extent consistent with law: (i) the Secretary shall propose a rulemaking plan to impose most-favored-nation pricing; [...] Sec. 4. Enabling Direct-to-Consumer Sales to American Patients at the Most-Favored-Nation Price. To the extent consistent with law, the Secretary of Health and Human Services (Secretary) shall facilitate direct-to-consumer purchasing programs for pharmaceutical manufacturers that sell their products to American patients at the most-favored-nation price.

• Drug companies sign "Most Favored Nation" deals, then raise prices ...

  The deals commit these companies to offer “most favored nation” pricing, matching the lowest prices they charge in other developed countries, for Medicaid and cash-paying customers through a forthcoming TrumpRx.gov portal. In exchange, participating companies received a three-year suspension of potential pharmaceutical tariffs and committed to over $150 billion in U.S. manufacturing investments. But the deals don’t require companies to lower, or even freeze, their list prices on existing products. And according to Reuters reporting based on data from 3 Axis Advisors, at least five of the 14 deal-signers are raising prices on January 1, 2026: #### MFN Deal-Signers: January 2026 Price Activity [...] #### MFN Deal-Signers: January 2026 Price Activity | Company | MFN Deal | Jan 2026 Price Increases | Notable Details | --- --- | | Pfizer | Yes | ~80 drugs | Comirnaty +15%, some hospital drugs +400% | | GSK | Yes | ~20 drugs | Increases range 2% to 8.9% | | Boehringer Ingelheim | Yes | Mixed | Jardiance -40% (IRA), others increasing | | Novartis | Yes | Yes | Details pending | | Sanofi | Yes | Yes | Details pending | Sources: Reuters, 3 Axis Advisors, company announcements For instance, Boehringer Ingelheim is cutting Jardiance’s list price by more than 40%, but that’s driven by the IRA’s Medicare negotiation requirements, not the MFN deal. Other Boehringer products are still seeing increases. [...] What politicians disagree on is how to fix it, and the results have been mixed. On December 19, 2025, President Trump announced that 14 of the 17 largest pharmaceutical companies had signed “most favored nation” pricing agreements. “This represents the greatest victory for patient affordability in the history of American health care by far,” Trump declared at a White House event. Twelve days later, Reuters reported that drugmakers were planning to raise prices on at least 350 branded medications starting January 1, including companies that had just signed those deals. ### Three administrations, three approaches

• How Most-Favored Nation Policy Could Undermine U.S. Leadership

  The U.S. Department of Health and Human Services (HHS) recently announced that the Administration would develop a list of countries which would serve as “MFN” targets—a list projected to include more than 20 countries, ranging from Lithuania and the United Kingdom to South Korea and Slovenia. Under this policy, U.S. prices for medicines covered under Medicare would need to match or be lower than the price targets set by HHS, or face additional regulatory penalties. [...] However, this leadership is under threat by the May 2025 Executive Order (EO) "Delivering Most-Favored-Nation (MFN) Prescription Drug Pricing to American Patients.” By benchmarking prices for innovative prescription medicines to the lowest prices paid by a basket of other developed countries, this order effectively imposes price controls, which, by limiting the potential profitability of new products, can stifle innovation. Reduced revenue due to price controls discourages investment in R&D, leading to fewer new products and potentially harmful shortages. [...] Unpacking the Mechanics of Most Favored Nation (MFN) The EO generally defines MFN as a basket of Organization for Economic Co-operation and Development (OECD) countries with a per capita gross domestic product (GDP) that is 60 percent or more of the U.S. per capita. The EO seeks to cap prices for innovative prescription medicines in Medicare to the lowest prices paid by the MFN countries.

• Most-Favored-Nation Prescription Drug Pricing Executive Order

  an MFN pricing model for one or more federal health care programs. [...] (e.g., Medicare, Medicaid, and the Children's Health Insurance Program (CHIP)) as well as in private markets. The Sidebar concludes with an analysis of how the MFN prices might interact with other existing federal programs, particularly the Medicare Drug Price Negotiation Program, which Congress created in the Inflation Reduction Act of 2022 (IRA). [...] On September 13, 2020, during his first term, President Trump issued EO 13948, "Lowering Drug Prices by Putting America First," which stated that "[i]t is unacceptable that Americans pay more" for prescription drugs than consumers in other countries. The 2020 EO set forth a new policy that Medicare should not pay more than the MFN price, which it defined as "the lowest price, after adjusting for volume and differences in the national [GDP], for a pharmaceutical product that the drug manufacturer sells in a member country . . . that has a comparable per-capita [GDP]." The 2020 EO directed the HHS Secretary to "test a payment model" under which the government would pay no more than the MFN price for certain drugs and biologics under Medicare Parts B and D. The 2020 EO also directed the