Trump Administration Releases “Most Favored Nation” Interim Final Rule

Trump Administration Releases “Most Favored Nation” Interim Final Rule

November 23, 2020, Covington Alert

On November 20, 2020, the Centers for Medicare & Medicaid Services (“CMS”) issued an interim final rule (“IFR”) implementing President Trump’s Most Favored Nation (“MFN”) executive order, which would tie Medicare Part B payments for certain drugs to the lowest price paid in other economically advanced countries (the “MFN IFR”). In a press conference on November 20, President Trump announced that MFN pricing would “lead[] to colossal savings for all Americans.” However, critics have expressed concerns that international reference pricing will reduce innovation and decrease access to new treatments.