Policy Briefs
December 4, 2020
The Trump Administration Releases Most Favored Nations Model
Even as the transition to the Biden Administration begins, the Trump Administration released several drug pricing initiatives, likely in an effort to keep its campaign promises. One of the largest initiatives is the mandatory Most Favored Nation (MFN) Model, which aims to lower prices by tying the cost of Medicare Part B drugs to the lowest price charged in similar counties. Policy experts believe that this model will likely be challenged in court, and if it does survive, may be rolled back under the Biden Administration. In addition to the MFN Model, a drug rebate rule was also released that would eliminate Medicare Part D drug rebates for “middlemen,” and President Trump announced he would eliminate the Unapproved Drug Initiative that has allowed drug makers to raise prices for old medicines.
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