HDA Statement on “Most-Favored-Nation” Executive Order
May 12, 2025HDA released a statement in response to President Donald J. Trump’s Executive Order establishing a “Most-Favored-Nation” (MFN) pricing policy for pharmaceuticals:
“As a sector saving the healthcare system approximately $63 billion annually, HDA and the nation’s pharmaceutical distributors share the Trump administration’s desire to reduce the cost of healthcare for all Americans. However, we are deeply concerned that the MFN approach — including the broadly referenced direct-to-consumer and importation provisions — could negatively impact access for providers and patients, as well as the long-term stability of the supply chain.
"HDA distributor members deliver 10 million medicines each day, connecting 1,200 manufacturers to 330,000 healthcare providers, pharmacies and other sites of care across the country. They do so while operating on the narrowest profit margins in healthcare (0.3 percent). This relentless focus on effectiveness and efficiency helps ensure providers get the right medications, on time, to provide the best care possible to their patients. As the administration implements various provisions within this Executive Order, it is critical that the pharmaceutical supply chain remains efficient and secure. Providers, patients and our healthcare system rely on it.
“While we have significant concerns about the EO as currently proposed, HDA and all of our members are committed to working with the White House to review and consider policies that lower out-of-pocket costs for American patients while improving access to quality care, supporting innovation, and maintaining a strong and resilient supply chain.”
To learn how distributors help ensure access to safe and affordable pharmaceuticals for all Americans, visit HDA.org/drug-pricing.
About HDA
The Healthcare Distribution Alliance (HDA) represents primary pharmaceutical distributors — the vital link between the nation’s pharmaceutical manufacturers and pharmacies, hospitals, long-term care facilities, clinics and others nationwide. Since 1876, HDA has helped members navigate regulations and innovations to get the right medicines to the right patients at the right time, safely and efficiently. The HDA Research Foundation, HDA’s nonprofit charitable foundation, serves the healthcare industry by providing research and education focused on priority healthcare supply chain issues.