Statement by Healthcare Leadership Council President Mary R. Grealy on “Most Favored Nation” Drug Pricing Rule
The Healthcare Leadership Council strongly opposes the “Most Favored Nation” interim final rule affecting drug pricing in the Medicare Part B program announced by the Administration and will support efforts to prevent its implementation before it can do harm to patients, healthcare providers, and medical innovation.
At a time in which biopharmaceutical innovation is not only critical to solving the COVID-19 pandemic but also to addressing diseases and health conditions affecting millions of Americans, it makes little sense to tie the viability and stability of our system in the United States to decisions made in foreign countries. American patients should not have their access to critical treatments and therapies affected by the price-controlling practices of other nations.
While this measure is clearly aimed at pharmaceutical companies, the financial burden will likely be borne by healthcare providers – particularly those providing care to cancer patients, as the majority of drugs affected by this rule are oncology medications – that will see reduced reimbursements from Medicare. Many cancer treatment centers will struggle to remain economically viable if Medicare cuts their revenues because of economic decisions made in other countries.
We also question the use of the Center for Medicare and Medicaid Innovation (CMMI) to implement this flawed drug pricing approach. CMMI is intended to be a platform to test new models to improve patient health and strengthen cost-effectiveness. A seven-year change in drug pricing is not so much experimentation as it is a policy shift that bypasses Congress’s role in establishing Medicare policy.
We consistently support efforts to strengthen healthcare affordability and we advocate trade policies that would press other nations to pay their fair share for medical innovation. The “Most Favored Nation” approach, however, is conceptually flawed and will be harmful to those who depend on the creation of safe and effective medicines.
For Immediate Release Contact: Kelly Fernandez
November 24, 2020 202-449-3452