Health Agencies Set Price Targets to Comply With Trump’s Order to Lower Prescription Costs

The Department of Health and Human Services (HHS) and the Centers for Medicare and Medicaid Services (CMS) are setting benchmark targets to lower prescription drug prices for American patients, the agencies announced on May 20. The announcement comes after President Donald Trump signed an executive order earlier this month to lower the price of prescription drugs for Americans to be more in line with what similarly sized economies pay globally. Trump’s May 12 order directed HHS to stop what he called “foreign freeriding” and to ensure that Americans no longer pay disproportionately high prices for the same medications. The Most-Favored-Nation (MFN) pricing model aims to align the cost of brand-name drugs in the United States with the lowest prices offered in other wealthy nations that have similar economic profiles....