On May 12, 2025, former President Donald Trump signed a sweeping executive order aimed at dramatically lowering the cost of prescription medications in the United States. The policy, centered around a “Most Favored Nation” (MFN) pricing model, ties the prices of certain prescription drugs in the U.S. to the lowest costs paid by other developed nations. This marks a bold attempt to rein in drug prices that have been skyrocketing for years.
The executive order specifically targets medications covered under Medicare Part B, which includes drugs administered in outpatient settings like cancer treatments, arthritis injections, and other life-sustaining therapies. Historically, these drugs have seen large price disparities when compared to those in countries like Germany, Canada, and the United Kingdom — often costing two to three times more in the U.S.
Under the MFN model, Medicare would be required to pay no more than the lowest price paid by other economically comparable countries. If fully implemented, this rule could significantly reduce out-of-pocket costs for seniors and those on fixed incomes, potentially saving the federal government billions while delivering much-needed relief to consumers.
Critics argue that pharmaceutical companies might push back by limiting supply or delaying the introduction of new drugs in the U.S., but supporters see it as a long-overdue correction to an imbalanced system. While legal challenges may delay enforcement, the executive order signals a clear policy direction toward global price parity.
For those shopping for coverage through the Affordable Care Act (ACA) marketplace, including Florida Blue plans, this could mean broader access to life-saving medications at more affordable rates — especially if insurers adjust formularies to reflect new pricing models.
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