Foreign Price Setting

Most Favored Nation

A flawed drug pricing proposal would import harmful foreign price controls—putting innovation, access and America’s innovation leadership at risk.

Reject Foreign Price Setting Policies

Don’t import harmful foreign price controls—focus on real solutions that lower costs for patients now

Congress is considering a policy that would tie U.S. drug prices to prices set by foreign governments. It’s called the “Most Favored Nation” (MFN) policy—and while it may sound like a simple solution, it isn’t guaranteed to lower costs for patients and comes with serious risks.

Why is this a problem?

  • The MFN policy ties U.S. drug prices to those in countries with government-run health systems—leading to reduced access and slower innovation, and no guaranteed savings for patients.
  • It increases America’s reliance on other countries—especially China, whose pharmaceutical industry is growing rapidly and could soon surpass ours.
  • It threatens future cures by jeopardizing billions for research and development—money that could support breakthrough treatments and expand U.S. manufacturing.

There’s a better way to lower drug costs.

President Trump was right to call out the fact that Americans often pay more for medicines than people in other countries. It’s a problem that deserves urgent attention. But tying our prices to those set by foreign governments isn’t the solution—it could actually make things worse. 

  • Hold PBMs accountable. Pharmacy Benefit Managers (PBMs) can get discounts and rebates on medicines of 50% or more but often charge patients full price. This drives up medicine costs for Americans. Fixing the PBM system is a practical, bipartisan solution that can lower drug costs and help patients immediately.
  • Fix the 340B hospital markup program. The federal 340B program allows some hospitals to buy medicines at steep discounts but then mark up prices by over 1000%. Reforming 340B will ensure that when hospitals get lower prices, those savings go to patients—not into inflated profits.
  • Make foreign countries pay their fair share. Many countries undervalue medicines and rely on the U.S. to fund innovation, leaving American patients to bear a higher share of global drug costs. Policymakers should use trade negotiations to require countries to pay their fair share toward innovative treatments—helping to reduce the financial burden on U.S. patients and families.

Your voice matters.

Tell Congress to reject harmful foreign price controls and support real solutions that lower your medicine costs today. Take action now!