Lowering Drug Prices by Putting America First
Limits Medicare Part B Prices to Lowest International Rates
What it does
Agencies must implement and test a payment model capping Medicare Part B payments at the most-favored-nation price.
Real-world impact
- Lowers Medicare payments for certain high-cost Part B drugs to international lowest prices.
- May reduce out-of-pocket costs for seniors and other Part B beneficiaries.
- Directs the health agency to test a payment model and change pricing rules.
Topics
Summary
This order directs the government to limit what Medicare pays for certain expensive Part B prescription drugs to the lowest prices paid in comparable developed countries. It defines the most-favored-nation price as the lowest adjusted price a manufacturer charges in similar high-income countries.
Medicare Part B beneficiaries, especially seniors, and taxpayers would be affected. The Department of Health and Human Services must test a payment model to carry out this change.
This matters because it aims to lower drug costs and reduce financial strain on patients and the government.
Questions, answered
Ask questions about this executive order and its implications. Try:
- “What agencies are affected by this order?”
- “How does this order change existing policy?”
- “What are the practical implications of this order?”