Most Favored Nation Pricing Model Could Fail Patients, New Brief Finds

WASHINGTON, Sept. 18, 2025 /PRNewswire/ -- The Most Favored Nation model intended to reduce drug prices in the U.S. could negatively impact patient access, according to a new Apteka policy brief commissioned by the Alliance for Patient Access. This brief is the second in the series for the Alliance for Patient Access highlighting the importance of keeping patient access at the forefront of health policy reform conversations.

The Most Favored Nation approach, recently revived by executive order, would tie U.S. drug prices to those paid in other developed countries. While the idea appears well intentioned, the new brief finds that Most Favored Nations could actually undermine affordability and limit access to life-saving treatments for American patients.

According to the analysis, Most Favored Nations may:

• Trigger new utilization management restrictions, such as tighter formularies, prior authorization or step therapy requirements.
  
  
• Limit future treatment options by discouraging investment in biosimilars and slowing pharmaceutical innovation.
  
  
• Overlook fundamental differences between the U.S. health care system and those abroad, leading to unintended consequences.

Unlike many nations used as reference points, the U.S. does not have a single-payer health care system. Instead, a complex multi-payer system with private insurance, high provider fees and greater administrative costs shapes how care is delivered. Tying U.S. prices to prices paid in other countries without considering these systemic differences risks creating disruption for patients and providers alike.

"Policymakers want to reduce drug costs, but short-sighted approaches like Most Favored Nations could limit benefit for patients," said Josie Cooper, Executive Director of the Alliance for Patient Access. "We need reforms that improve affordability while protecting innovation and preserving access to treatment options."

The brief emphasizes that without reformation of this pricing model, Most Favored Nations risks trading short-term political wins for long-term harm to patients.

About the Alliance for Patient Access

The Alliance for Patient Access is a national network of policy-minded health care clinicians who advocate for patient-centered care.

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SOURCE Alliance for Patient Access