Most Favored Nation (MFN) drug pricing is just price controls by another name. Instead of openly capping what a drug can cost in the United States, MFN pegs U.S. reimbursement to the lowest price set by foreign governments, many of which directly cap prices. The result is the importation of failed European policies. Firms would no longer negotiate based on domestic supply, demand, and therapeutic value, but on political decisions made abroad. In practice, MFN sets a government-imposed ceiling tied to the most restrictive international benchmark, functioning exactly like price controls that have repeatedly backfired.
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