A federal judge issued a nationwide injunction on President Donald Trump's "most favored nation" drug pricing rule that would tie Medicare Part B drug prices to those paid in other wealthy countries starting Jan. 1, Endpoints News reported.
U.S. District Judge Catherine Blake in Baltimore said CMS failed to follow a federal law that requires a notice and comment period before imposing new rules. The temporary restraining order is likely to keep the policy from taking effect before President Trump leaves office, according to Endpoints News.
The rule, which the White House announced Nov. 20, would reduce the price of 50 Medicare Part B drugs to the lowest price paid by other wealthy countries. Groups including the Association of Community Cancer Centers and the Pharmaceutical Research and Manufacturers of America sued to block the rule.
"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," Tom Nickels, executive vice president of the American Hospital Association said. "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."
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