Overview

• President Trump's executive order expands the Most-Favoured-Nation pricing model to include both Medicare and Medicaid, capping U.S. drug prices at the lowest rates paid by other wealthy countries.
• HHS Secretary Robert F. Kennedy Jr. has 30 days to notify drug manufacturers of target prices, but details on enforcement and coverage remain unresolved.
• Experts warn the order's procedural requirements and potential legal challenges could delay price reductions for months or even years.
• The pharmaceutical industry argues the policy could harm innovation by reducing funds for research and development, while critics of high U.S. drug prices highlight the significant international price disparities.
• The order plans to bypass pharmacy benefit managers (PBMs), allowing patients to purchase medications directly from manufacturers at reduced rates, though its impact on private insurers remains unclear.