Prescription Drug Pricing Changes Through Most Favored Nation Model

On July 24, 2020, President Trump signed Executive Order 13937, directing the Department of Health and Human Services to establish a Most Favored Nation (MFN) model for Medicare drug pricing. The order required Medicare to pay no more for drugs than the lowest price paid in other developed nations. The rule was implemented in November 2020 but was blocked by federal courts before taking effect, and was subsequently rescinded by the Biden administration in 2021.