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Government price setting policies like Most Favored Nation-pricing are bad for American patients, especially over the long term. These “foreign first pricing” schemes don’t guarantee lower costs. Instead, they take away dollars that could be invested in American manufacturing and undermine biopharma R&D. Most importantly, foreign reference pricing fails to address the real reasons Americans pay more for medicines than other countries: pharmacy benefit managers (PBMs), 340B hospital markups and foreign governments not paying their fair share for innovative medicines. 

To lower drug costs in America, policymakers must:

  • Hold PBMs accountable
    In 2023, PBMs took $140 billion in rebates and fees, driving up American medicine costs. These PBM profits may exceed the total cost of drugs overseas. Just three PBMs control nearly 80% of the U.S. market and they dictate what medicines patients can get, what they pay and what hoops they must jump through.
  • Fix the 340B Hospital Markup Program
    The little-known federal 340B program is a $66 billion program that lets big, tax-exempt hospitals and clinics buy medicines for as little as a penny and then markup the price by thousands of dollars. Hospitals abuse the program to boost their profits at the expense of patients, taxpayers and employers. This program is leading to higher medicine prices in the U.S. 
  • Make foreign countries pay their fair share
    European countries routinely adopt pricing and reimbursement policies that undervalue medicines, making U.S. patients foot a disproportionate share of the bill for incentivizing the R&D investment for medicines used around the world. These tactics include biased pricing formulas, mandatory discounts, clawbacks and referencing prices paid by lower income countries. Policymakers can use trade negotiations to force countries to pay a minimum percentage of their GDP per capita on new innovative medicines to ensure everyone is paying their fair share.

Taken together, these policies can support American patients in accessing and affording the medicines they need, while ensuring the United States remains the global leader in biopharmaceutical innovation.

Brianna Allen

Brianna is a Senior Director on PhRMA’s Public Affairs team focusing on communications strategies and activities around Medicare, Medicaid and access to medicines. Prior to joining PhRMA, she served as a strategic communications advisor at the FDA’s Center for Devices and Radiological Health and worked as a director of strategic communications on FGS Global’s health care team. She started her career in journalism and spent nearly a decade covering domestic policy issues, including federal health policy for POLITICO. She enjoys spending time outdoors exploring Northern Virginia with her husband, two toddlers and corgi puppy.

Brianna Allen headshot

New poll: 2 in 3 voters prefer a candidate committed to lowering health insurance premiums

September 18, 2026

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ICYMI: Hospital consolidation is driving up health care costs

August 27, 2026

What AARP isn’t telling seniors about MFN

August 24, 2026

It's time to modernize 340B: The case for a rebate model

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Policymakers should improve patient access and reject price controls

August 18, 2026

CMS proposal could discourage patient-centered innovation

August 18, 2026

Insurers blame GLP-1s for rising costs. The data tells a different story.

August 14, 2026

The FTC’s PBM enforcement actions gave us a glimpse behind the curtain; it’s time to let the light in.

August 7, 2026

Nearly 1 in 4 patients initially denied access to IRA medicines

August 6, 2026

Voters continue to voice their concerns on government price controls

July 24, 2026

ICYMI: Fox business hosts call 340B a ‘Rotten System’ and ‘Cash Cow’ for hospitals

July 23, 2026

Medicare Part D at 20: Building on a strong foundation

July 23, 2026

Message to USAging: Providers are raising concerns about coverage barriers

July 22, 2026

New PBM principles don't change the fundamental challenge: Access to lower-cost medicines

July 10, 2026

340B’s reality: A booming business for hospitals, pharmacies and corporate giants

June 25, 2026

Guest Blog: Price controls won’t lower costs when insurers control access

June 25, 2026

Insurers are blaming medicines for premium hikes in Massachusetts. The state's own data suggests otherwise.

June 24, 2026

340B’s lack of guardrails lets big hospital systems turn it into an oversight-free revenue stream

June 22, 2026

MFN could disrupt the affordable medicines patients depend on

June 18, 2026

New “America Cures” ad: U.S. patients get new medicines first

June 15, 2026

Private equity's new play? Become a nonprofit to profit off 340B.

June 5, 2026

Patients speak out: MFN won't address my affordability concerns

June 4, 2026

MFN price controls threaten American jobs and the U.S. economy

May 28, 2026

340B is growing, but it is unclear if Illinois patients benefit

May 27, 2026

Ahead of ASCO: Cancer innovation is promising, but policy choices matter

May 26, 2026

State price-setting boards create more questions than answers

May 20, 2026

Fox Business spotlights hospitals abuse of the 340B program

May 15, 2026

New analysis highlights access to new medicines in the United States and abroad

May 13, 2026

The Wall Street Journal raises new alarms about 340B

May 11, 2026

MFN won’t lower costs when insurers call the shots

May 8, 2026

Hospitals in the hot seat: Congress sharpens focus on 340B, consolidation and rising costs

May 7, 2026

New "Goldmine” ad reveals hospitals hide how they profit from 340B markups

May 6, 2026

Guest Blog: How MFN price controls could decide my health care

April 30, 2026

A program off track: How 340B drives both hospital consolidation and system gaming

April 27, 2026

Washington Post Editorial Board says 340B has become “corporate welfare”

April 27, 2026

Briefing: Capitol Hill panel on "Healthcare Denial Crisis in America"

April 24, 2026

MFN price controls would drain pensions and put retirements at risk 

April 23, 2026

Survey confirms too many insured Americans face barriers to reliable health care

April 22, 2026

States should avoid repeating the IRA’s price‑setting mistakes 

April 21, 2026

Modernizing 340B using rapid verification: The case for a rebate model 

April 20, 2026

CMS undermines medical progress with MFN price controls 

April 16, 2026

Trump Administration’s efforts to have other countries pay their fair share are underway

April 15, 2026

70% DENIED: How insurance denials are delaying and preventing care for millions of Americans

April 14, 2026

CMS’ MFN proposals won’t help seniors despite lofty promises

April 9, 2026

Voters voice concerns on government price controls

April 7, 2026

Virginia should be cautious about importing federal price-setting mechanisms

April 1, 2026

Policymakers shouldn’t double down on the IRA’s flaws with MFN

March 30, 2026

Hospitals drive nearly 80% of the U.S. health spending gap

March 25, 2026

Congress should look under the hood of 340B, hospitals don't want them to

March 19, 2026

MFN drug pricing risks reviving a harmful metric the U.S. rejected

March 16, 2026

340B hospitals buy low and sell high, a new analysis shows

March 12, 2026

Leadership in biopharmaceutical R&D provides U.S. patients the greatest access to innovative medicines

March 11, 2026

New report from Minnesota: 340B is generating billions for big hospitals

March 9, 2026

Harmful U.S. policies will help drive China’s global leadership in biopharmaceutical innovation

March 4, 2026

MFN undermines U.S. biopharmaceutical innovation

February 25, 2026

340B hospital markup scheme is costing states, taxpayers billions

February 25, 2026

CMS puts patients and innovation at risk with MFN

February 24, 2026

Questions mount over 340B program and increased cost to everyone

February 23, 2026

No hassle, hidden markups or fees: AmericasMedicines.com

February 19, 2026

PhRMA Forum 2026 highlights the importance of fostering the next era of American leadership

February 18, 2026

The Federal Trade Commission (FTC) takes important action to highlight and curb PBM abuses

February 17, 2026

Separating fact from fiction in the medicine supply chain

February 11, 2026

New list of selected drugs highlights growing consequences of government price setting

January 28, 2026

50-state poll says Americans are concerned that hospital markups hurt patients

January 27, 2026

Three things you should know from the insurer CEO congressional hearings

January 26, 2026

New analysis finds 340B hospitals push patients toward costly care to boost profits

January 21, 2026

Price setting policies put cancer gains in jeopardy

January 16, 2026

Can’t get your medicine? Don’t count on your insurer.

January 15, 2026

Data shows tax-exempt hospital profit-seeking behavior, not drug prices, is driving explosive 340B expansion

January 8, 2026

Big, tax-exempt hospitals are charging cancer patients, employers massive medicine markups

January 5, 2026

340B’s billion-dollar boom: Oversight lags as spending soars

December 19, 2025

New study: 340B rebate model pilot won’t hurt cash flow for providers

December 18, 2025

One thing the Senate can agree on: It’s time to fix 340B

November 25, 2025

Myth vs. Fact: How government price setting impacts innovation

November 24, 2025

The IRA’s price setting doesn’t guarantee lower costs or better access

November 17, 2025

Stop, collaborate and re-evaluate: ICER’s pricing report

November 14, 2025

California’s landmark PBM crackdown: A wake-up call for reform

November 13, 2025

Middlemen mark up drug prices and keep discounts meant for you

November 10, 2025

The Administration approves manufacturers’ 340B rebate pilot plans

November 6, 2025

PhRMA calls on USTR to ensure foreign nations pay their fair share

November 4, 2025

Putting patients first: Breaking down barriers to care

October 28, 2025

Direct purchase programs can lower costs for patients

October 20, 2025

340B abuses are fueling higher Medicare costs, new BRG report shows

October 15, 2025

What seniors can expect this open enrollment

October 14, 2025

Part D premiums are going up, while choices are going down

October 8, 2025

PBMs say they want lower priced medicines, so why don’t they cover them?

October 7, 2025

Historic biopharmaceutical investments: A prescription for America’s future

September 29, 2025

ICYMI: The Wall Street Journal calls 340B reform a “good idea to cut drug costs”

September 23, 2025

340B hospitals use scare tactics to evade accountability

September 16, 2025

Why states struggle to deliver savings: Middlemen and 340B siphon dollars from patients and states

September 15, 2025

CBO: 340B program costs taxpayers, no evidence patients benefit

September 10, 2025

PhRMA stresses importance of 340B Rebate Model Pilot

September 9, 2025

New “Meet Mark” ad exposes how the 340B hospital markup program drives up costs for everyone

September 3, 2025

New study unmasks how big-city hospitals exploit 340B by posing as rural providers

August 21, 2025

PBMs are hiding hurdles to essential care

August 20, 2025

Study: 340B hospitals drive up patient drug costs

August 15, 2025

Curbing 340B abuse and rising costs with the rebate model

August 12, 2025

Celebrating 60 Years of Medicare

July 30, 2025

New study: PBMs and commercial insurers are quietly blocking prescription access

July 30, 2025

North Carolina puts patients first with rebate pass-through law

July 29, 2025

PBMs, not patents, are blocking access to lower-cost medicines

July 23, 2025

Medicare patients face higher drug costs, despite IRA promises

July 22, 2025

The hidden cost of 340B: A multi-billion-dollar burden on taxpayers and Medicaid

July 14, 2025

Latest analysis from Ohio exposes growing abuses of the 340B markup program

July 7, 2025

CMS continues to make a bad law worse

June 27, 2025

ICYMI: Forget Foreign Price Controls: There’s a better solution to lowering drug prices

June 26, 2025

New report finds rampant abuse of the 340B program

June 20, 2025

Americans are paying a 26% freerider tax on medicines because other countries don’t pay their fair share

June 17, 2025

Medicare Part D plans initially denied medicines for more than 70% of patients in four chronic disease areas

June 16, 2025

How the 340B hospital markup program could hurt Michigan patients

June 12, 2025

New “Balance the Scales” campaign highlights why Americans pay more for prescription medicines

May 21, 2025

How the 340B hospital markup program and PBMs drive up costs for U.S. patients

May 16, 2025

The AHIP premium dollar corrected (again)

May 8, 2025

PBMs launch new ad campaign to block reforms

May 5, 2025

New analysis: Fewer treatments and cures under the IRA’s pill penalty

May 1, 2025

When hospitals have free rein to mark up drug prices, who pays the price?

May 1, 2025

When middlemen own it all, patients pay the price

April 10, 2025

How the IRA is impacting the generic drug market

April 8, 2025

3 myths critics get wrong about intellectual property

March 28, 2025

New report finds more abuse of 340B program by hospitals and drug middlemen

March 24, 2025

Three reasons Congress should fix the IRA’s pill penalty

March 24, 2025

A closer look at how health care consolidation drives up patient costs, creates barriers to care

March 17, 2025

Health care practitioners sound the alarm on middlemen-imposed barriers to patient care, need for policy change

March 13, 2025

Congress Keeps PBMs in the Hot Seat

March 6, 2025

340B markup program is a hidden tax, increasing costs for employers, straining state and federal budgets

March 5, 2025

Improved treatments continue to lead to declining cancer mortality rates in the U.S.

February 25, 2025

New report sheds light on payment flows in the pharmaceutical supply chain, including the role of 340B and vertical integration

February 13, 2025

Virginia, Don't Let Politicians Take Away Your Medicine

January 23, 2025

Patients are losing as government price setting continues

January 17, 2025

Wrapping up the J.P. Morgan Healthcare Conference

January 16, 2025

NYT exposes hospitals, middlemen make millions off a hospital markup program

January 15, 2025

FTC finds PBMs make billions in profit from marking up cancer, other critical generic drugs

January 14, 2025

PhRMA CEOs Tee Up Next Week's Health Care Conference

January 11, 2025

New study: Entities that don’t make medicines get half of what is spent on those medicines

January 7, 2025

A new administration poses new opportunities for patient access

December 17, 2024

New 340B report from Minnesota exposes steep hospital markups on medicines, patient benefits remain unclear

November 27, 2024

Michigan hospitals using federal program to markup cost of medicines, gouging patients

November 27, 2024

340B spending is exploding, forcing prices up for patients, employers and government programs

November 13, 2024

Post-approval R&D is critical for fighting cancer. The IRA makes it more difficult.

November 13, 2024

Three things to know about 340B contract pharmacies

November 12, 2024

The PBM industry's desperate attempt to stop reform

November 12, 2024

PhRMA launches new ad calling for Congress to make sure savings go to patients, not PBMs

November 11, 2024

CMS needs to do better

November 4, 2024

ICYMI: Grounding policy reforms in real lived patient experiences is key to improving outcomes

October 31, 2024

New PES survey: Out-of-pocket costs lead key health care priorities ahead of the November election

October 30, 2024

Guest Post: My health care vote

October 29, 2024

Insurers continue shifting more costs on to patients

October 28, 2024

Americans speak out on health insurance barriers and need for policy change, according to the latest Patient Experience Survey

October 28, 2024

ICYMI: The powerful companies driving local drugstores out of business

October 25, 2024

Is CMS paying attention to the growing access barriers for Medicare patients under the IRA?

October 18, 2024

PhRMA urges HRSA not to impede new 340B pricing approaches to improve transparency and integrity

October 18, 2024

7 reasons why states shouldn’t copy the IRA’s price setting mistake

October 15, 2024

Did the administration consider the importance of blood cancer medicines to patients in price setting process?

October 8, 2024

Hispanic Heritage Month: Fighting for Hispanic patients

October 7, 2024

Illegal abuse of 340B hurts us all

October 3, 2024

Did the administration consider the importance of blood clot medicines to patients in the price setting process?

September 25, 2024

PBMs and insurers off the hook: Sen. Sanders’ selective hearing on drug costs

September 24, 2024

Three ways state drug price setting boards fail patients

September 18, 2024

The Inflation Reduction Act could increase costs and reduce access for millions of seniors

September 17, 2024

Are the IRA’s Part B inflation rebates lowering costs for Medicare patients? No.

September 16, 2024

Did the administration consider the importance of autoimmune disease medicines to patients in price setting process?

September 11, 2024

Key voter insights two months from Election Day

September 10, 2024

Patient priorities in the 2024 election

September 10, 2024

Did the administration consider the value of innovative diabetes medicines in price setting process?

August 28, 2024

New survey: Insurers confirm IRA will reduce patient treatment options

August 20, 2024

The unintended consequences of government price setting in Medicare Part D

August 16, 2024

Don’t put the government between patients and their medicines

August 7, 2024

Biosimilars continue to drive market competition and increase savings for seniors

August 6, 2024

What is the low-income subsidy program and how is it changing?

July 31, 2024

Voters across all 50 states want state policymakers to focus on health insurance and PBM practices

July 30, 2024

Case study: How seniors could face access disruptions because of the IRA’s price setting provisions

July 22, 2024

WTAS: Voters voice concerns about PBM abuses, call on policymakers to act

July 19, 2024

PhRMA launches new ad in campaign exposing ways middlemen drive up costs

July 17, 2024

FTC report confirms PBMs profit at the expense of patients

July 10, 2024

New 50-state poll Americans want to hold health insurers and PBMs accountable for high out-of-pocket costs and other practices

July 9, 2024

PhRMA reiterates concerns with IRA price setting program, urges CMS to mitigate harm

July 3, 2024

ICYMI: Hidden markups at mail-order pharmacies increase costs for employers

July 2, 2024

340B sales go up, free or reduced-cost care offered at hospitals goes down

July 1, 2024

More than 60 researchers advocate on Capitol Hill

July 1, 2024

The IRA could lead to higher out-of-pocket costs for 3.5 million Medicare patients in 2026

June 25, 2024

ICYMI: What patients care about this election year

June 24, 2024

ICYMI: The Opaque Industry Secretly Inflating Prices for Prescription Drugs

June 21, 2024

ICYMI: Health care policy should be driven by patients, not politics

June 10, 2024

ICYMI: Misaligned policies undermine patient access

June 6, 2024

PhRMA Warns Federal Agencies: Consolidation and vertical integration among insurers, PBMs, and hospitals threaten patients

June 5, 2024

The hidden bill patients don’t know they are paying

June 3, 2024

ICYMI: Innovation transforms lives but misguided federal policies threaten patient outcomes

May 30, 2024

How the IRA is more coercive than any European government price setting scheme

May 29, 2024

Mental Health Awareness Month: Supporting loved ones and improving mental health in America

May 28, 2024

How government price setting fails to address systemic health care inequities

May 24, 2024

Ongoing federal probes shed light on PBM and insurer practices

May 20, 2024

340B grows and grows, but patients do not see the savings

May 13, 2024

340B grows and grows, but patients do not see the savings

May 13, 2024

Government price-setting boards: Why Minnesota needs to take a better approach

May 9, 2024

WTAS: The consequences of consolidation and vertical integration

May 6, 2024

IRA is already negatively impacting access to medicines in Part D

April 25, 2024

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