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HHS Proposes ‘Most Favored Nation’ Approach to Lower Drug Prices

November 26, 2019

An HHS proposed rule currently under review at the Office of Management and Budget would have the U.S. pay less than other developed countries for some Medicare drugs by using a “most favored nation” approach, HHS Secretary Alex Azar said.

Last year, the administration proposed using an International Pricing Index (IPI) to link the prices of certain Medicare Part B drugs to their price tags overseas. But President Trump doesn’t believe the policy goes far enough, according to Azar, who spoke at a healthcare forum in Washington, D.C. hosted by Axios.

He said the administration is looking to change the policy so that Americans pay even less for covered drugs than other developed countries. The president used the term “most favored nation” status this summer when he announced a possible executive order “where we pay whatever the lowest nation’s price is.”

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