The administration plans to propose rules imposing most-favored-nation pricing and take other aggressive measures, including potential antitrust actions, if drug manufacturers fail to offer lower prices within 30 days. The details of these measures remain to be fully outlined.

The administration intends to open negotiations with drug companies next month and pursue formal rule-making if necessary. However, the legal authority to extend these policies to the private insurance market is unclear and may require additional legislative or regulatory actions.

The strategy could lead to reduced revenue for pharmaceutical companies, potentially impacting their ability to invest in research and development. However, the plan also aims to ensure that U.S. companies can negotiate higher prices in other countries, which might offset some losses.