Overview

• President Trump is preparing to sign an executive order directing federal health agencies to implement a 'most favored nation' pricing model for certain Medicare drugs.
• The plan would link Medicare's payments for drugs to the lowest prices paid by countries like Canada, Germany, and the U.K., aiming to reduce U.S. prescription costs.
• A similar proposal finalized in 2020 was blocked by federal courts, and the Biden administration later abandoned it due to legal and stakeholder concerns.
• The policy is projected to save U.S. taxpayers over $85 billion in seven years, though experts debate its feasibility and potential impact on drug access.
• Pharmaceutical industry groups are expected to challenge the order, while health policy experts remain divided on its effectiveness and implementation scope.