The U.S. Department of Health and Human Services (HHS) announced plans to set prescription drug prices based on the lowest rates paid by wealthy nations, following an executive order from President Donald Trump.
The policy would use most-favored-nation pricing, linking U.S. prices to those in OECD countries with at least 60% of U.S. per-capita GDP.
Health Secretary Robert F. Kennedy Jr. said HHS would reveal price targets for pharmaceutical companies in coming weeks. “We expect pharmaceutical manufacturers to fulfill their commitment to lower prices for American patients, or we will take action to ensure they do,” Kennedy said.
Analysts warned of legal challenges, and experts like Yunan Ji of Georgetown noted such a policy could disrupt global drug markets. “It’s almost certain that drug manufacturers will have to renegotiate their contracts with other countries,” she said.
Industry group PhRMA argued real issues lie with price markups by middlemen and global imbalances.