AHA urges CMS to withdraw Most Favored Nation rule

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.