In recent policy announcements, the US government has outlined proposals to introduce international reference pricing mechanisms – commonly described as Most Favored Nation (MFN)-style models – into Medicare and Medicaid drug pricing. These models are generally designed to more closely align US drug prices with those found in other developed countries. The proposed policy changes represent a significant shift in the pharmaceutical pricing structure in the US.
At the 2026 JP Morgan Healthcare Conference, CRA hosted an expert panel session with health policy experts from the US, Germany, and the UK to discuss the global implications of MFN pricing in Medicare. The panel addressed several key topics and considerations, outlined below:
- Uncertainty resulting from MFN pricing proposals and increasing concerns about how ex-US pricing models may adapt to new US pricing policies.
- Shifting dynamics between payers and manufacturers are reshaping the landscape of contract negotiations and market access.
- Policy changes are having a disproportionate impact on small and emerging biotech companies, while global competition is intensifying.
The panelists emphasized that ongoing dialogue, clearer policy direction, and acknowledgment of the interconnectedness of global markets are essential to manage these changes successfully and ensure that efforts to improve affordability do not compromise innovation or access to medicines.
Read the full summary of the 2026 JP Morgan Panel here.
