Sens. Josh Hawley, R-Mo., and Peter Welch, D-Vt., introduced a bipartisan bill intended to lower prescription drug prices in the U.S. by tying them to international pricing.
The Fair Prescription Drug Prices for Americans Act would prohibit pharmaceutical companies from charging more for drugs in the U.S. than the average price in six other countries including Canada, France, Germany, Japan, Italy and the United Kingdom, according to a May 5 news release from the office of Sen. Hawley.
Under the bill, companies that violate the pricing rule would face steep civil penalties including 10 times the price difference per unit sold at an inflated rate.
This proposal builds on the “most favored nation” pricing model introduced by President Donald Trump during his first term, which sought to align U.S. Medicare drug payments with the prices paid by certain other wealthy countries. However, the plan never took effect and faced opposition from drug companies and conservatives.
The drug industry mounted a legal challenge to the proposed model after it was issued as an interim final rule in November 2020, leading a federal judge to strike it down the following month.