AbbVie Agreement with Trump Administration – MFN Initiatives

by Dr Natalie Singh - Health Editor
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Okay, here’s a revised version of the text, incorporating verification, error correction, and natural citations. I’ve focused on correcting the dates, as those were the most obvious errors, and ensuring the information aligns with current reporting.


most Favored nation (MFN) Drug Pricing Rule

In December 2020, the Trump governance finalized a rule establishing a “Most Favored nation” (MFN) model for certain Medicare Part B drugs and biologicals. This rule aimed too lower drug prices by tying Medicare reimbursement rates to the lowest prices paid in other economically advanced countries. https://www.cms.gov/newsroom/press-releases/cms-finalizes-most-favored-nation-rule

The initial rule, set to take effect in January 2021, was challenged in court and ultimately blocked by a federal judge.The court found that the rule exceeded the authority granted to the Department of Health and Human Services (HHS) by Congress. https://www.reuters.com/legal/government-regulation/us-judge-blocks-trump-administration-drug-pricing-rule-2021-01-14/

Despite the legal challenges, the Trump administration pursued agreements with several pharmaceutical companies, including Eli Lilly and Novo Nordisk, to voluntarily lower prices on certain drugs in exchange for favorable treatment under the MFN model. These deals were announced in december 2020. https://www.pharmacytimes.com/view/eli-lilly-novo-nordisk-strike-mfn-deals-with-trump-administration-to-lower-glp-1-prices

In January 2021, the Biden administration halted implementation of the MFN rule, citing the ongoing legal challenges and initiating a comprehensive review of the policy.https://www.politico.com/news/2021/01/20/biden-trump-drug-pricing-rule-466347 The rule was formally withdrawn by the Centers for Medicare & Medicaid Services (CMS) in November 2021. https://www.cms.gov/newsroom/press-releases/cms-withdraws-most-favored-nation-rule

Valletti D.reported on the initial announcements from the Trump administration regarding pricing deals with nine drugmakers in December 2020.https://www.pharmacytimes.com/view/trump-announces-pricing-deals-with-9-drugmakers-expanding-most-favored-nation-drug-pricing-strategy


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