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CMS Finalizes Rule to Withdraw Part B Drug Model

Abigail Painchaud
January 10, 2022

The Centers for Medicare & Medicaid Services (CMS) finalized a rule to withdraw the Medicare Part B drug model, also referred to as the most favored nation (MFN) model. The original November 2020 interim final rule would have phased-in reduced payment rates for 50 Part B drugs over four years and paid Medicare providers the fully reduced rate for the remaining three years of the model.

CMS finalized its rule to rescind the MFN model and remove the regulatory text added by the proposed rule effective Feb. 28. In making the decision, the agency cited litigation halting implementation of the model, as well as stakeholder comments opposing the Jan. 1, 2021, model start state

In response to the proposed rule to rescind the MFN model, America’s Essential Hospitals urged CMS to finalize the withdrawal due to procedural deficiencies, ongoing legal challenges, and a significant reduction in provider payment rates.

Contact Director of Policy Rob Nelb, MPH, at rnelb@essentialhospitals.org or 202.585.0127 with questions.

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