AHA STATEMENT ON COURT DELAY OF MOST FAVORED NATION MODEL INTERIM FINAL RULE
Published: Thursday, December 31, 2020 12:00 am
Tom Nickels, Executive Vice President, American Hospital Association
The AHA is pleased that Judge Blake has granted a temporary restraining order to prevent the Most Favored Nation (MFN) Model interim final rule from taking effect on January 1. Hospitals and health systems have very deep concerns about the substance and legality of this model, and the AHA filed a Declaration with this lawsuit expressing how the model could negatively impact hospitals, health systems and the patients they care for. Instead of holding drug companies accountable and lowering drug prices, this model simply slashes payments to hospitals for the drugs they must purchase to treat their patients. These cuts will ultimately lead to less access to care for patients and communities. The AHA again urges the court to reject this model as illegal and for the Administration to replace it with a real effort at drug pricing reform.