TPA Warns Against MFN Drug Pricing Proposal in State of the Union Address

WASHINGTON D.C. – The Taxpayers Protection Alliance pushed back on President Trump’s endorsement of “Most Favored Nation” drug price controls in his State of the Union address, arguing that the proposal would harm patients by undermining pharmaceutical research and development.

Ross Marchand, Executive Director of the Taxpayers Protection Alliance, called for President Trump to reject price controls:

“President Trump promised Americans they would pay the ‘lowest price anywhere in the world’ for prescription drugs under his Most Favored Nation plan. While that may sound promising on paper, government-imposed price controls inevitably lead to shortages and diminished innovation wherever they are tried—and this policy will be no different.

“To see this impact in action, look no further than the government’s current drug price control policies implemented under President Biden, via the 2022 Inflation Reduction Act (IRA), which have been continued under President Trump. As economist Tomas J. Philipson noted in The Wall Street Journal, ‘sustained research and associated funding are drying up because of price controls. Following IRA implementation, companies have halted at least 55 research programs and given up 26 medicines.’ Doubling down on price controls is not what the doctor ordered. 

“To actually lower drug prices, President Trump should work with Congress to streamline the broken drug approval process at the Food and Drug Administration and build on recent reforms addressing pharmacy benefit managers. Price controls are not the solution to addressing affordability.”