Published
November 03, 2025
Why it matters: The U.S. Chamber of Commerce has long warned about the dangers of Most-Favored Nation (MFN) pricing policies, and new data from Vital Transformations underscores the catastrophic impact MFN in Medicare would have on American jobs, innovation, and state economies.
By the numbers: Over the next decade (2025–2034), if MFN pricing were imposed in Medicare, it could result in:
- 2.0–2.2 million total job losses, wiping out 40% of the life science workforce.
- This includes 472,000 direct life science jobs and 1.7 million indirect jobs in industries like transportation and supply chain.
- $351 billion in lost federal tax revenue and $260 billion in lost state tax revenue.
- States like California, Florida, Texas, and New York would bear the brunt of these losses.
Zoom in: The Vital Transformation report highlights the broader economic fallout of price controls, including:
- Reduced earnings and tax revenue at both state and federal levels.
- A chilling effect on life science innovation, as companies face diminished incentives to invest in research and development, ultimately delaying the ability of American patients to access new treatments and cures.
What’s at stake: The U.S. life science industry is a cornerstone of American innovation and economic strength, supporting millions of high-paying jobs and driving medical breakthroughs. MFN pricing threatens to dismantle this ecosystem, leaving patients with fewer treatment options and longer wait times for life-saving medicines.
The bottom line: As the Chamber’s recent blog on MFN pricing emphasized, importing foreign price controls into the U.S. healthcare system is a step in the wrong direction. The Vital Transformations report makes it clear: MFN policies would devastate the life science industry, harm patients, and weaken the U.S. economy.
What’s next: Policymakers must reject MFN pricing and focus on market-driven solutions that lower costs while preserving the innovation and jobs that make the U.S. a global leader in life sciences.
For more, read the Chamber’s latest blog on the dangers of MFN pricing.
About the authors
Brad Watts
Brad Watts is the Senior Vice President at the U.S. Chamber of Commerce's Global Innovation Policy Center (GIPC). He works with U.S. Chamber members to foster a political, legal, and economic environment where innovators and creators can invest in the next big thing for the benefit of Americans and the world.
Lexi Branson
Lexi Branson serves as Vice President of Health Policy at the U.S. Chamber of Commerce, where she leads the Chamber’s Health Policy Division.
