Washington, D.C. — May 3, 2025 — Commitment to Seniors, a project of American Commitment, strongly urges Congress not to replace the current Medicaid “Best Price” model with the Trump administration’s Most Favored Nation (MFN) proposal in the upcoming reconciliation package. MFN is a form of price fixing and is not the answer to lowering prescription drug costs in the U.S.
If implemented, international reference pricing would risk patients’ access to Medicaid drugs, and manufacturers could be forced to withdraw medicines from the program. Congress must carefully consider these unintended consequences as other nations with such price controls consistently suffer from delayed market access to medicine, long wait times for care, and equipment shortages.
“We need to beat foreign price controls, not join them. America is the global leader in R&D and innovation, and too many other countries get a free ride. But this flawed MFN proposal would mean less medical innovation for anyone to get a ride on – free or otherwise. And that means fewer new cures and treatments that patients depend on,” said Phil Kerpen, President of American Commitment. “Congress should prioritize commonsense, free-market policies like the EPIC Act and bipartisan PBM reform legislation to protect our health care system and deliver lower costs, while the administration should directly confront foreign price control regimes through trade negotiations. Price controls have never worked and never will.”