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Most Favored Nation

January 14, 2022 | Comments Off on Most Favored Nation
Posted by Frank Ciesla

Over the years I have written about the use of “Most Favored Nation” approach to the pricing of Drugs.

Currently there is a nationwide preliminary injunction enjoining the Department of Health and Human Services from implementing the Most Favored Nation Rule.   Given this preliminary injunction, the Most Favored Nation Model was not implemented on January 1, 2021 and will not be implemented without further rulemaking.  The Trump administration started moving in that direction. It now appears that the Biden administration is rejecting that approach in favor of the government negotiating prices. What is not clear is what standard will be adopted and by whom as to how the approved price will be negotiated. As more details become available, we will comment.


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