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President Trump on Sunday signed an executive order moving Medicare one step closer to a “most favored nation” drug pricing system, instructing the government health care program for seniors to develop and test paying the same drug prices as other developed countries with cost controls.
“It is the policy of the United States that the Medicare program should not pay more for costly Part B or Part D prescription drugs or biological products than the most-favored-nation price,” Trump’s order declares.
The memo defines the most-favored-nation price as “the lowest price, after adjusting for volume and differences in national gross domestic product, for a pharmaceutical product that the drug manufacturer sells in a member country of the Organization for Economic Co-operation and Development.”