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CMS Rescinds the Most Favored Nation Interim Final Rule

January 7, 2022

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CONTACTS
Mary Mullaney, Director, Hospital Payment Policies

On Dec. 27, 2021, the Centers for Medicare & Medicaid Services (CMS) issued a final rule rescinding the Most Favored Nation (MFN) Model interim final rule with comment that was released on Nov. 27, 2020 [refer to Washington Highlights, Nov. 23, 2020]. Under the MFN Model, Medicare payment for certain separately payable Part B drugs would have been reduced and payments would have been tied to the lowest prices paid by comparable foreign nations.

The AAMC supports the decision to rescind this interim final rule as stated in its comments submitted to the CMS on the interim final rule [refer to Washington Highlights, Jan. 29, 2021]. In its comments, the AAMC supported efforts to make prescription drugs more affordable for consumers, but expressed that it did not believe that the MFN Model would achieve this goal; instead noting that it would jeopardize access to medically necessary care for Medicare beneficiaries and negatively impact the hospitals and providers who care for those patients.

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