CMS formally rescinds most-favored nation drug proposal

The Centers for Medicare & Medicaid Services Dec. 29 formally rescinded its Most Favored Nation model for Part B drugs. The model was established via interim final rule during the Trump administration to initiate a seven-year, nationwide, mandatory effort to test an alternative way for Medicare to pay for certain Medicare Part B single-source drugs and biologicals. CMS in August signaled its intent to end the model, for which AHA voiced support in an Oct. 11 letter to the agency by arguing that the rule’s “legal infirmities fell within three major categories: (1) failure to follow proper procedures in promulgating the rule, (2) exceeding statutory authority, and (3) constitutional violations.”