HHS Announces Plan to Tie Medicare Part B Drug Payments to Lowest Prices in Reference Countries

The Department of Health and Human Services (HHS) has released initial details regarding the implementation of Most Favored Nation (MFN) pricing for prescription drugs. The MFN model, which aims to align U.S. drug prices with those in other countries, is set to impact Medicare Part B payments for certain high-cost medications. This development follows ongoing discussions about reducing drug costs and ensuring affordability for patients.

According to the information provided, the MFN pricing model will base reimbursement rates on the lowest price paid by a group of reference countries. The policy will apply specifically to drugs covered under Medicare Part B that account for significant spending. HHS indicated that this approach seeks to address disparities in drug pricing between the United States and other nations while maintaining access to essential treatments. Further details about the timeline for implementation and specific drugs affected are expected in subsequent announcements from HHS.

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Source: GO-AI-ne1

Date: May 21, 2025

Author

Mark Chiang