FTI Center for Healthcare Economics and Policy’s Jason Shafrin, PhD published a new commentary in The Evidence Base titled “Perspectives from the Healthcare Economist: Most Favored Nation – Key readings to help you evaluate a major change to US drug pricing policy.”
With US prescription drug pricing remaining a prominent and widely debated issue, Dr. Shafrin examines the implications of the recent executive order proposing the adoption of “most favored nation” (MFN) pricing. He explains what MFN pricing involves, tackles key questions surrounding the policy, and points readers to essential resources to better understand this complex and controversial proposal.
On May 12, 2025, President Trump issued an executive order calling for “most favored nation” (MFN) drug pricing in the US. Dr. Shafrin explores key questions such as:
- What is MFN pricing?
- Which countries will be included in the MFN basket?
- How much lower are drug prices ex-US vs US?
- How should I evaluate MFN? What is the overall goal of drug pricing?
- Why do drug prices vary by country? Is this a good thing?
- What has happened when other countries have implemented international reference pricing?
Key Contacts