Providers Challenge Most Favored Nation Model on Drug Pricing

February 09, 2021 by Alec Stone MA, MPA, Former ONS Director of Government Affairs and Advocacy

In an effort to provide affordable and accessible health care, former President Donald Trump issued four executive orders in November 2020, designed to tackle the reimportation of prescription medications through Medicare Part B, known as the Most Favored Nation Model (https://innovation.cms.gov/innovation-models/most-favored-nation-model). Providers, patients, and political communities were adamantly against (https://www.reuters.com/article/usa-trump-drug-pricing/update-1-federal-judge-blocks-trump-administration-drug-pricing-rule-idUSL1N2J325K) the change arguing it eliminates access to vital care for Medicare patients.

ONS also advocated caution (https://www.ons.org/sites/default/files/2021-01/12.8.20%20ONS%20MFN%20Model%20Comments%20Final.pdf) to the Centers for Medicare and Medicaid Services (CMS) on the safety and efficacy aspects of reranking imported drugs, noting that the lack of input from key stakeholders could:

“We urge you to include more robust safeguards to monitor and immediately remedy access issues for beneficiaries as a result of closures and consolidation among providers,” ONS leaders said in a letter (https://www.ons.org/sites/default/files/2021-01/12.8.20%20ONS%20MFN%20Model%20Comments%20Final.pdf) to CMS Administrator Seema Verma. “We urge you to delay rollout of the Model until after the comment period closes.”


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