FOR IMMEDIATE RELEASE
HHS, CMS Set Most-Favored-Nation Pricing Targets to End Global Freeloading on American Patients
Most-Favored-Nation policy builds on President Trump’s broader reforms to eliminate global freeloading and ensure every American has access to affordable, life-saving treatments.
Washington, DC—MAY 20, 2025— The U.S. Department of Health and Human Services announced today that it is taking immediate steps to implement President Trump’s Executive Order “Delivering Most-Favored-Nation Prescription Drug Pricing to American Patients,” a central component of the Administration's strategy to lower health care costs in the United States.
Under the leadership of President Donald J. Trump, HHS Secretary Robert F. Kennedy Jr., and CMS Administrator Dr. Mehmet Oz, the Department has identified specific targets pharmaceutical manufacturers are expected to meet to satisfy the requirements of the Executive Order. President Trump and Secretary Kennedy look forward to highlighting commitments in the coming weeks. These commitments will ensure Americans no longer pay more for medications than patients in other economically comparable countries, relieving the unfair burden placed on hard-working Americans.
“For too long, Americans have been forced to pay exorbitant prices for the same drugs that are sold overseas for far less,” said Secretary Kennedy. “That ends today. We expect pharmaceutical manufacturers to fulfill their commitment to lower prices for American patients, or we will take action to ensure they do.”
HHS expects each manufacturer to commit to aligning US pricing for all brand products across all markets that do not currently have generic or biosimilar competition with the lowest price of a set of economic peer countries. The MFN target price is the lowest price in an OECD country with a GDP per capita of at least 60 percent of the U.S. GDP per capita. These targets will drastically bring down U.S. drug prices, which are often three to five times higher than prices abroad, while preserving innovation by simply ensuring that Americans bear no greater burden than patients receiving the same drugs in other countries.
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