What ‘Most Favored Nation’ Drug Pricing Means for Patients

You may have heard the term “Most Favored Nation” (MFN) drug pricing in the news recently. This idea for lowering drug prices has been around since at least 2018. It could change how some prescription drugs are priced in the United States – but by how much is uncertain at this point.

What is “Most Favored Nation” pricing? It’s a policy, currently supported by the Trump Administration, that aims to reduce prescription drug prices in the United States by basing them on lower prices in other developed nations.

MFN would allow U.S. patients to pay the same or comparable drug prices that people in other developed countries pay.

One of the Administration’s stated reasons for MFN policies is to more equitably distribute the costs of medical innovation, such as drug research and development (R&D) costs. Currently, U.S. consumers help subsidize R&D in foreign health systems through higher-cost prescriptions at the pharmacy counter.

By linking prices to those set by foreign markets, the Administration anticipates that prices in other nations will rise, resulting in lower prices in the United States.

With MFN drug pricing, people with asthma, allergies and related conditions may be able to obtain expensive asthma inhalers, epinephrine products and advanced medications like biologics at lower prices. However, MFN may also raise questions about patient access.

Here’s a look at some pros and cons of MFN:

Pros

• Lower costs. If the government pays less to provide medications through Medicare and Medicaid services, patients might also pay less.
• More predictable pricing. Stability in pricing would be helpful for patients who rely on long-term treatments. It allows families and caregivers to budget for medication expenses without sudden price spikes.

Cons

• Limits on where you get care. Small or rural clinics might not be able to afford to keep certain medicines (like biologics) in stock if the Medicare payment is too low. Patients would need to go to larger clinics or a hospital instead.
• Impact on innovation. Lower profits for drug companies could reduce R&D funding, which might slow the creation of new treatments and cures in the future.

Who benefits from ‘Most Favored Nation’ drug pricing?

People who are on private insurance are unlikely to see much change in what they already pay for their current prescription drugs.

The MFN lower prices are more likely to impact people on Medicare and people who are uninsured. These groups typically pay more in out-of-pocket costs compared to those with access to manufacturer copay savings programs.

People on Medicaid are unlikely to see significant cost savings, since copays in the program are often minimal. But Medicaid programs in states are likely to save money on prescription drug spending. And those savings may be passed on to consumers through other services.

How much can you save with ‘Most Favored Nation’ drug pricing?

Pharmaceutical companies have announced agreements with the Trump Administration to participate in MFN pricing.

• Pfizer says it will provide prescription drugs at savings that average 50% off list price and could go as high as 85% off list price.
• AstraZeneca says it will provide eligible patients with prescription drugs at a discount of up to 80% off list price.
• Novo Nordisk and Eli Lilly announced in separate agreements they will provide their weight loss prescription drugs at discounts of between 60-80% off list price.

For many people, these discounted prices may still be too high. If medication costs are a concern for you and your family, talk with your healthcare provider and pharmacist. Ask how much your prescription will cost.

Find out if patient support or savings programs are available to help you pay less. Some pharmaceutical manufacturers may offer them. Learn ways to better afford your prescribed medications:

• What if I can’t afford my asthma medication?
• What if I can’t afford my allergy medication?
• What if I can’t afford epinephrine?
• What if I can’t afford my eczema medication?

Separately, Pfizer and AstraZeneca have announced direct-to-consumer pricing programs for select drugs. Many patients may be eligible for lower costs through drug manufacturers’ patient assistance or copay card programs. But for patients that are uninsured or whose insurance does not cover their treatment, direct-to-consumer pricing can help lower costs.

These prices will also be made available through the Trump Administration’s direct-to-consumer web platform for American drug prices, TrumpRX.com. This website is expected to launch in early 2026. The website would help patients buy prescription medicines directly from drug companies at discounted prices. It may also guide consumers to cost-saving programs, such as $0 copay offers for people with commercial insurance.