AHA today urged the Centers for Medicare & Medicaid Services to immediately withdraw its Most Favored Nation model interim final rule and “replace it with a serious effort at drug pricing reform.” 

Effective Jan. 1 for most hospitals, the interim final rule cuts payments for certain Medicare Part B drugs and biologicals to no more than the lowest price that drug manufacturers receive in other similar countries.  

“Instead of directly tackling the skyrocketing cost of drugs, this rule puts hospitals in the untenable position of having to divert resources from other patient care simply to buy the drug therapies they need for their patients,” AHA wrote. “And instead of enacting thoughtful policies that attempt to lower drug prices, this rule puts patients at risk. Indeed, CMS itself states that it expects beneficiaries’ access to drugs to be impeded, requiring them to accept less-effective treatments or forgo or postpone necessary care. In addition, the agency makes the breathtaking estimate that, within three years, nearly one in five Medicare Part B enrollees may have no access to drugs subject to the MFN rule.”

The AHA last month filed a declaration supporting other organizations seeking a temporary restraining order and preliminary injunction to prevent the rule from cutting payments for certain Medicare Part B drugs and biologicals. 

Related News Articles

Headline
President Trump today announced the first agreement with a major pharmaceutical company, Pfizer, to bring American drug prices in line with the lowest paid by…
Headline
The AHA Sept. 29 sent recommendations to the Department of Health and Human Services and the Centers for Medicare & Medicaid Services to help ensure…
Headline
The Centers for Medicare & Medicaid Services announced Sept. 26 that average premiums for Medicare Advantage and Part D would decline slightly in 2026.…
Headline
The AHA expressed support Sept. 22 to House and Senate sponsors of the Medicare Advantage Prompt Pay Act (H.R. 5454/S. 2879), legislation that would apply a…
Headline
The Centers for Medicare & Medicaid Services Sept. 18 released a final rule on policy and technical changes to Medicare Advantage, the Medicare…
Headline
The AHA submitted a statement Sept. 17 for a House Ways and Means Committee markup session on a series of health care and other bills. Specifically, the AHA…