Courts block Jan. 1 implementation of most favored nations drug pricing model
On Dec. 18, the AMA sent a letter to HHS urging it to withdraw the recently issued Most Favored Nation (MFN) Model interim final rule that would impact pricing and availability of many of the most expensive Medicare drugs nationwide. While the AMA has long supported efforts to address escalating prices of prescription drugs and reduce financial burdens on patients, this interim final rule would have serious detrimental impacts on patient access to needed medications and create strain and uncertainty for physician practices. This rule would put the burden on physicians to obtain drugs covered by the rule at lower prices commensurate with MFN model reimbursement, exposing physicians to potential losses or inability to provide necessary treatment options to their patients and forcing patients to make difficult decisions on whether to find new providers or forgo care.
The interim final rule was set to be implemented on Jan. 1, however, the rule has been temporarily blocked from implementation by two different lawsuits including a temporary restraining order and a preliminary injunction. AMA is monitoring the developments on this rule and will continue to advocate for CMS to withdraw and reconsider it.
