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Think Tank Suggests CMS, USTR Could Enforce Most Favored Nation, Other Drug Pricing Policies

 
• By Cathy Kelly

A Republican think tank suggested variations of the Most Favored Nation and international reference policies in Medicare and Medicaid, as well as tariffs and other trade levers to rebalance drug pricing disparities between US countries and abroad.

The policy proposals fit with the Trump Administration's focus on costs and tariffs. (Shutterstock)
Key Takeaways
  • Variations of the Most Favored Nation and International Pricing Index models developed in the first Trump Administration could be resurrected to address 'global freeloading' of US R&D efforts, the America First Policy Institute suggested.
  • The issue brief also proposed applying tariffs and other trade levers to raise the prices foreign governments pay for drugs to increase their contribution to R&D efforts.
  • The Trump Administration is expected to return to policies related to international reference pricing, but biopharma wants to ensure they focus on raising prices abroad and not just lowering them in the US.

A Trump Administration aligned think tank outlined policies that could use US Centers for Medicare and Medicaid Services and US Trade Representative authorities to pressure foreign governments to increase the...

An America First Policy Institute issue brief, which aligns with President Trump’s suggestion that the US is getting “ripped off” by other countries, was authored...

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