Trump Administration Revives MFN Drug Pricing Model, Potentially Affecting Blood and Biotherapies Reimbursement Rates

The Trump administration announced plans to revive the most-favored-nation (MFN) model for drug pricing in an executive order issued May 12. AABB and the blood community previously opposed the MFN model due to concerns that it could lower Medicare payment rates for certain drugs and biologicals, including biotherapies and some blood products.

In a press release issued Tuesday, CMS stated that “the department has identified specific targets pharmaceutical manufacturers are expected to meet to satisfy the requirements of the executive order,” but noted that President Trump and Secretary of Health and Human Services Robert F. Kennedy Jr. would outline these commitments in the coming weeks.

The press release suggests that the 2025 MFN model will be limited to brand products that do not have generic or biosimilar competition in the U.S. or in the reference markets. Additionally, the MFN target price will be the lowest price in a country that is a member of the Organisation for Economic Co-operation and Development (OECD) with a gross domestic product (GDP) per capita of at least 60% of the U.S. GDP per capita.

AABB will continue to monitor developments related to the MFN model and advocate for payment policies that are aligned with advancing patients’ access to safe, life-saving blood, blood products, cellular therapies and other biotherapies.