Taxpayer Watchdog Group Warns Lawmakers: A Most Favored Nation Policy for Medicaid Means Price Controls and Socialized Medicine

For Immediate Release

Contact: Kara Zupkus, (224) 456-0257

WASHINGTON, D.C. – In recent days, concerning reports have surfacedthat the Trump administration is pushing lawmakers to pass a “Most Favored Nation” (MFN) policy for drugs covered under Medicaid through the budget reconciliation process, 

Responding to the news, David Williams, president of the Taxpayers Protection Alliance (TPA), issued the following statement: 

“MFN proposals have always been a bad idea for patients, taxpayers, and the economy. MFN is just another way to implement price controls. Applying this policy for drugs covered by Medicaid would effectively import foreign price controls from countries that free-ride off American intellectual property (IP) and innovation, jeopardizing the U.S.’s competitiveness by chilling investment in medical research.  

“American patients already enjoy unmatched access to new medications thanks to strong IP protection and investments in research & development, producing better medicines that ultimately reduce long-term costs of care. However, this advantage is not guaranteed. Pursuing an MFN model would follow some of the worst policy blunders of the Biden administration – such as the Inflation Reduction Act’s Medicare drug price ‘negotiations,’ which have already slashed investment in small-molecule drug development alone by 70 percent.

“Importing foreign price controls could also drive many manufacturers to end their participation in the Medicaid program to avoid the costly mandates. This would also negatively affect patients’ access to life-saving medicine under Medicare, further undermining the efficiency of these taxpayer-funded programs. 

“Continuing down this road would be disastrous for America’s healthcare system. Lawmakers must focus on real solutions to address rising healthcare costs and reduce wasteful spending of taxpayer dollars. For example, Congress should prioritize reforms that tackle improper payments under Medicare and Medicaid and crack down on Pharmacy Benefit Managers’ practices that drive up costs for patients in publicly funded healthcare plans. 

“TPA urges members of Congress to reject calls for an MFN model and to stand up for the interests of taxpayers and consumers.” 

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.