Sponsor
Dan Meuser
Representative · R-PA
Representative · R-PA
The bill aims to lower drug prices for Medicare/Medicaid beneficiaries and reduce federal drug spending by tying U.S. payments to lower international prices, but it risks reduced drug availability, incentives for manufacturers to limit supply or delay launches, potential hits to innovation, and added administrative complexity.
Medicare and Medicaid beneficiaries would pay lower prices for certain covered drugs because MFN links U.S. payment to lower net prices in selected reference countries.
Patients with chronic conditions would likely face lower out-of-pocket costs when pharmacies and hospitals dispense drugs priced under the MFN model.
The federal government and taxpayers may see reduced drug spending over the model period if MFN prices lower Medicare and Medicaid outlays.
Patients (especially those with chronic conditions) and hospitals could face reduced access if some manufacturers raise list prices, limit supply, or restrict distribution to offset lower MFN revenues.
Patients and Medicare beneficiaries could lose access if some manufacturers withdraw drugs from the U.S. market or delay launches to avoid MFN pricing.
If MFN-driven revenue reductions cut manufacturer R&D budgets, patients and taxpayers may face slower development of new drugs over time.
Based on analysis of 2 sections of legislative text.
Requires CMMI to test a Most Favored Nations drug pricing model (second-lowest net price among eight reference countries) starting Jan 1, 2029, for five years.
Requires the Center for Medicare & Medicaid Innovation (CMMI) to include and test a Most Favored Nations (MFN) Pricing Model for certain covered drugs starting January 1, 2029. The MFN price is defined as the second-lowest applicable net price among eight specified reference countries; eligible beneficiaries, providers, and dispensers must be given access to that price, manufacturers must report price data, and the model will run for five years. The Secretary may temporarily suspend MFN requirements for a drug if the manufacturer is expected to reach a covered agreement with the Secretary by the end of 2028; such agreements must include commitments to expand U.S. manufacturing and be reported to specified congressional committees.
Official title: To amend title XI of the Social Security Act to require the Center for Medicare and Medicaid Innovation to test a model implementing most-favored-nation drug pricing.
Introduced March 5, 2026 by Dan Meuser · Last progress March 5, 2026