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CMS Proposes to Rescind Most Favored Nation Rule

August 13, 2021

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CONTACTS
Mary Mullaney, Director, Hospital Payment Policies

On Aug. 10, the Centers for Medicare & Medicaid Services (CMS) published a proposed rule that would rescind the Most Favored Nation (MFN) Model interim final rule (85 Federal Register 76180). In January, the AAMC called on the CMS to rescind the MFN interim final rule, stating that the rule would “jeopardize access to medically necessary care for Medicare beneficiaries and negatively impact the hospitals and providers who care for these patients [refer to Washington Highlights, Jan. 29].”

Stakeholders filed lawsuits in response to the CMS’ decision to waive notice and comment rule-making and were successful in halting the interim final rule’s implementation, which was set to take effect on Jan. 20. Given these lawsuits and stakeholder concerns about the model’s start date, the CMS is proposing to rescind the interim final rule.

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