Overview

• President Trump is expected to sign an executive order next week directing health officials to adopt a 'most favored nation' pricing model for select Medicare drugs.
• The policy aims to reduce U.S. drug costs by benchmarking Medicare payments to the lowest prices paid by other wealthy countries.
• The original 'most favored nation' rule, finalized in 2020, was blocked by federal courts for procedural issues and later abandoned by the Biden administration in 2022.
• Congressional Republicans rejected embedding the policy in legislation, prompting the administration to pursue it through executive authority instead.
• Critics warn the plan could face renewed legal challenges and may lead to reduced access to medications, while supporters argue it could deliver significant cost savings for Medicare.