HHS Explains MFN Drug Price Approach
The Department of Health and Human Services (HHS) issued guidance regarding President Donald Trump’s recent executive order regarding adopting most favored nation (MFN) drug pricing throughout the country.
If Big Pharma brand drug makers were not worried before, they should be now. An HHS press release laid out expectations for how drug makers will engage with the order. It notes all brand products that do not currently have generic or biosimilar competition across all markets (lines of business) are covered. It says drug companies must “commit to aligning” their U.S. prices with “the lowest price of a set of economic peer countries.” The peer group is the so-called rich nations as represented by the Organization for Economic Co-operation and Development countries and that have a gross domestic product (GDP) per capita of at least 60% of the U.S. GDP.
Big Pharma came out swinging, arguing the order could mean a pullback on planned American investments.
Critics came out again arguing there is no legal basis for the order, although the administration will pursue the policy through an experimental Center for Medicare & Medicaid Innovation (CMMI) model. It will likely face legal challenges.
Notwithstanding all this, Trump made the right move here to finally challenge Big Pharma. My blog on the topic: https://www.healthcarelabyrinth.com/trump-goes-all-out-on-drug-price-reform/ .
Additional articles: https://insidehealthpolicy.com/daily-news/trump-s-mfn-pricing-plan-likely-face-legal-hurdles-despite-cmmi-workaround and https://insidehealthpolicy.com/daily-news/hhs-most-favored-nation-scheme-include-only-brand-name-drugs and https://www.hhs.gov/press-room/cms-mfn-lower-us-drug-prices.html
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#irp #mfn #drugpricing #trump