Recently, the current administration announced an executive order meant to enforce Most-Favored Nation (MFN) drug pricing within the U.S. healthcare system. The executive order, entitled “Delivering Most-Favored Nation Prescription Drug Pricing to American Patients” would restrict the prices of certain drugs in the United States by benchmarking them against the lowest prices in other selected countries.
Regarding this proposal, Dr. Yanira Cruz, President and CEO of the National Hispanic Council on Aging (NHCOA), issued the following statement:
“While the ‘Most-Favored Nation’ model stems from a legitimate effort to reduce drug costs, it risks a devastating impact on access to important treatment and medications for millions of older adults, particularly within Hispanic communities.”
Addressing the financial toll dealt to United States patients is certainly necessary. However, the manner in which it is addressed must be well thought-out and free of potential pitfalls that would further burden patients in the United States. In 2020, a similar attempt was made to enforce MFN drug pricing, the pitfalls of which were warned against by the Centers for Medicare and Medicaid Services.
The enforcement of MFN Drug pricing is an un-delicate hand, whose attempt to solve unfair drug prices, would mistakenly create a harsher healthcare landscape and marketplace. Patients are likely to lose access to essential medications, be forced to switch to less effective treatments, and face disruptions to ongoing care. Hispanic American older adults, who face a higher prevalence of chronic disease, would be disproportionately affected.
Internationally, the institution of drug pricing regulations has been shown to reduce cost at the expense of delayed access to important and innovative treatments. Such regulations in European countries have resulted in a healthcare landscape where patients wait an average of 19 months or more to access new drugs, whereas outside of these regulations, the same treatments became available sooner in the United States.
Furthermore, independent studies have warned that these measures could significantly reduce the development of new therapies, particularly in critical areas such as cancer and neurological diseases, which would limit future treatment options. Cancer is already the leading cause of death among Hispanic Americans in the United States. Therefore, any drug pricing policy that attempts to make treatment more affordable for the patient must include measures that would ensure uninhibited, timely, and effective access to care for American patients.
The National Hispanic Council on Aging urges members of Congress to carefully review this proposal and prioritize reforms that balance affordability with ongoing access and innovation. Older adults, especially those in vulnerable situations, deserve comprehensive, sustainable solutions that protect their health and dignity.
About NHCOA: NHCOA is the leading national organization working to improve the lives of Hispanic older adults, their families, and their caregivers. Headquartered in Washington, DC, NHCOA has been a strong voice dedicated to promoting, educating, and advocating for research, policy, and practice in the areas of economic security, health, and housing for Hispanic older adults, families, and caregivers for the last 51 years. For more information about NHCOA call 202-347-9733 or visit www.NHCOA.org.
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