Cost-Effectiveness Thresholds Used in the United States versus Most Favored Nations

Date: April 3, 2026
Journal: Health Affairs Scholar
Citation: Hanxuan Yu, Peter J Neumann, David D Kim, Joshua T Cohen, Ashley A Leech, Cost-Effectiveness Thresholds Used in the United States versus Most Favored Nations, Health Affairs Scholar, 2026. https://doi.org/10.1093/haschl/qxag081

Objectives

Cost-effectiveness thresholds inform whether health interventions represent good value for money, yet their use varies across countries. This study compares thresholds cited in published cost-effectiveness analyses (CEAs) in the United States with those in countries designated as the Most Favored Nations (MFNs) under the 2025 President’s Executive Order on prescription drug pricing.

Methods

We analyzed 6,876 cost-per-QALY studies published between 1979 and 2023 from the Tufts CEA Registry. We standardized thresholds as multiples of each country’s GDP per capita, and used logistic regression to estimate the probability of citing a threshold >1X GDP per capita, adjusting for region, intervention type, disease area, and study period.

Results

Over time, MFN studies shifted toward citing lower thresholds, whereas U.S. thresholds consistently cited thresholds >1X GDP per capita. After adjusting for other factors, MFN studies were less likely to cite higher thresholds than U.S. studies. Cancer-related CEAs and CEAs of pharmaceutical interventions were more likely to cite higher thresholds.

Conclusions

CEAs in the U.S. and peer high-income nations cite remarkably different thresholds, with MFNs citing lower value benchmarks over time. Policymakers should be cautious about adopting pricing policies that would implicitly subject U.S. pharmaceutical spending to benchmarks developed in different institutional and fiscal contexts.

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