President Trump finalized a “most favored nation” (MFN), or “best price,” prescription drug-pricing rule on Nov. 20. The goal of the MFN concept is to deliver fair prices to Americans without diminishing drug company profits. While there is controversy as to whether the final rule genuinely implements the concept, the MFN approach should be followed. Opponents of the rule should improve it, not oppose it.
The MFN best-price concept mandates the same drug prices for Americans and wealthy Europeans, who have been paying about one-third of what Americans pay. But, notably, the MFN concept does not impose government-set prices upon drug manufacturers, who would be free to set whatever price would maximize sales and profits.
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