The Center for Innovation & Value Research has expressed concerns regarding the Trump administration's reinstatement of the Most Favored Nation (MFN) drug pricing policy. In a press release dated May 13, 2025, the organization described the policy as a "blunt instrument that imports foreign price controls," suggesting it could undermine the U.S. healthcare system's capacity to foster innovation. The Center emphasized the importance of policies that balance cost containment with encouraging medical advancements.
According to the U.S. Department of Health and Human Services, the MFN policy aims to align U.S. drug prices with those in other developed nations by setting price targets based on the lowest price in an Organisation for Economic Co-operation and Development (OECD) country with a GDP per capita of at least 60% of the U.S. GDP per capita. This approach is intended to reduce Medicare Part B drug spending and address price disparities. However, critics argue that such measures may not account for the complexities of the U.S. pharmaceutical market.
Healthcare experts have raised concerns about potential negative impacts of the MFN model on patient care and the pharmaceutical industry. They caution that importing foreign pricing mechanisms may not be suitable for the U.S., potentially leading to reduced access to innovative therapies and hindering new treatment development.
The Center for Innovation & Value Research, formerly known as the Innovation and Value Initiative, is a nonprofit organization dedicated to advancing patient-centered, evidence-based healthcare policies. Based in Alexandria, Virginia, it focuses on health technology assessment, patient engagement, and economic impact analysis. Their mission is to promote value-based decision-making in healthcare.
