Most Favored Nation Model for drug pricing to be introduced in USA in January

In support of US President Donald Trump's historic commitment to lowering drug prices for patients, Health and Human Services (HHS) Secretary Alex Azar announced a drug payment model through the Center for Medicare and Medicaid Innovation at the Centers for Medicare & Medicaid Services (CMS).

This system proposes to lower Medicare Part B payments for certain drugs to the lowest price for similar countries, thereby saving American taxpayers and beneficiaries more than $85 billion over seven years.

"The MFN model will be the most significant single action any administration has ever taken to lower American drug costs"Starting in January, the model, known as the Most Favored Nation (MFN) model, will test an innovative way for Medicare to pay no more for high-cost, physician-administered Medicare Part B drugs than the lowest price charged in other similar countries.