Back to archive page
CHA News

CHA Releases Summaries of New Drug Pricing Payment Model and Part D Safe Harbor Final Rules

For CFOs, finance & reimbursement staff, government relations staff, pharmacy managers

CHA has issued detailed summaries, prepared by Health Policy Alternatives, of two drug pricing final rules recently published by the Department of Health & Human Services (HHS).  

The first summary details the Most Favored Nation Model interim final rule with comment period – a new mandatory payment model that bases the price Medicare pays for certain drugs on the lowest price paid in some other developed nations. The model takes effect Jan. 1, 2021, and runs until Dec. 30, 2027. The Centers for Medicare & Medicaid Services will accept comments until Jan. 26, 2021; however, the agency is waiving requirements to go through notice and comment rulemaking. 

The second summary details the final rule issued by the HHS Office of Inspector General that eliminates the current system of drug rebates in Medicare Part D and establishes two new safe harbors. The rule is effective Jan. 29, 2021, with changes to the existing discounts safe harbor taking effect on Jan. 1, 2022.