President Donald Trump on Monday signed an executive order that seeks to bring the price of drugs in the United States in line with what other countries pay.
The policy, known as most-favored-nation status, is intended to drive drug companies to lower prices domestically while other countries shoulder more of the cost. White House officials said Monday this policy seeks to make the global pharmaceutical market more competitive and encourage other countries to contribute to the cost of drug innovation.
Trump attempted to implement the policy within Medicare Part B during his first term, but the plan was ultimately blocked during the Biden administration. Officials said the policy announced Monday is broader and extends to the commercial market.
