US President Donald Trump and Pfizer CEO Albert Bourla shake hands in the Oval Office of the White House. | Bloomberg/Getty Images

Standing next to Pfizer CEO Albert Borla in the Oval Office last week, President Donald Trump announced that the pharma giant had made a startling concession: It would voluntarily lower the prices it charges Americans for its medicines. At the same time, the White House announced plans for TrumpRx, a new government website, that would launch next year, where US patients could purchase prescription drugs directly from drugmakers.

Politicians have been promising for years to do something to lower drug prices, a top priority for many voters. President Barack Obama made it a talking point, as did President Trump in his first term. President Joe Biden actually succeeded in passing legislation that would allow Medicare to negotiate drug prices with Big Pharma.

Now, Trump is back in the White House and is determined to make good on his promise to bring American drug prices in line with Europe and Canada through a policy called “most favored nation” status.

So, why do Americans pay more for prescription drugs than anyone else in the world? And what exactly is “most favored nation status?” To get a grasp on last week’s big news, Today, Explained co-host Sean Rameswaram talked with Stacie Dusetzina, professor of health policy at Vanderbilt University Medical Center.

Below is an excerpt of their conversation, edited for length and clarity. There’s much more in the full episode, so listen to Today,........

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