Comparing U.S. Drug prices to other countries: A more nuanced view

President Trump recently signed a new executive order advancing a 'most favored nation' (MFN) approach to drug pricing.The policy would link U.S. prices for certain medicines to those paid in other high-income countries an idea that's gaining traction as frustration over higher drug prices builds at home.

At first glance, MFN may seem like a desirable and reasonable step: if Germany or Japan can pay less for a drug, why can't we? But comparisons like these, while politically appealing, are far more complicated than they appear.

An MFN approach to drug pricing is plagued with issues -- in implementation and in unintended consequences.