Most Favored Nation Model, which will begin in January, will peg payments for some Medicare Part B drugs to the lowest price charged in other industrialized nations.
On Friday, the Trump administration released the interim final rule for the "Most Favored Nation" model, which will begin in January.
"The way we pay for some of the most-costly drugs in Medicare today puts American patients last; the President's Most Favored Nation Model will put American patients first," Health and Human Services Secretary Alex Azar said.
The Department of Health and Human Services (HHS) also announced a finalized rule to eliminate the current system of rebates for prescription drugs under Medicare Part D.
The announcement came nearly four months after Trump signed four executive orders, including measures aimed at supporting the importation of prescription drugs from foreign countries and bringing Medicare prices in line with those found in other countries.
The Trump administration announced Friday that the Department of Health and Human Services (HHS) will launch The Most Favored Nation Model, a controversial drug pricing model in January that administration officials claim could save taxpayers $85 billion over seven years.
The HHS announced it has also finalized a rule to eliminate the current system of rebates for prescription drugs under Medicare Part D.
