U.S. Push to Narrow Drug Price Gaps with Other Countries

President Donald J. Trump has revived a policy that links some U.S. drug prices to lower costs abroad. The Administration has asked major manufacturers to commit to prices no higher than the lowest in a group of developed countries, a step described as a most-favored-nation (MFN) policy. HHS and CMS have set targets, and letters were sent to manufacturers with a September 29, 2025 deadline. The move is intended to reduce large price differences that leave American patients paying more.

Although the White House and HHS present the policy as a way to protect patients, independent analyses have raised concerns. Research published in Value in Health and peer-reviewed commentary on PubMed show that international reference pricing sometimes reduces access and can lead to price convergence with wealthier markets. Reuters reported that HHS submitted a pilot named the GLOBE Model to the White House for review, which will need Office of Management and Budget clearance before it can proceed. Policy details will be reviewed by the Office of Management and Budget before any pilot or rule is implemented.