The Illinois Biotechnology Innovation Organization (iBIO) opposes the Trump Administration’s decision to move forward with the flawed concept of a “Most Favored Nation” policy. This inadequate regulation will dramatically affect the most vulnerable seniors and patient communities and chill investment and research at a time when our industry is working around the clock to fight COVID-19 and continue to provide patients access to innovative new therapies during a pandemic.
On November 20, the Department of Health and Human Services (HHS) released an interim final rule that would set reimbursement for 50 Part B drugs and biologics based on the international pricing data using so-called Most Favored Nation (MFN) pricing.
The rule will test the use of MFN pricing in a demonstration that will run for seven years, beginning on January 1, 2021. MFN pricing will extend to the top 50 Part B drugs.
A recent analysis shows that the USA’s absence of price controls leads to more and newer medicines available sooner to Americans. Of the 74 cancer drugs launched between 2011-2018, 95% are available in the United States, compared with 74% in the UK, 49% in Japan, and 8% in Greece.
And it will stifle investment in new cures. The administration’s economic advisors analyzing similar proposals found that foreign price controls would result in American patients missing out on as many as 100 new drugs over the next decade.
iBIO member companies are working around the clock to fight COVID-19 and continue to provide patients access to innovative new therapies. Foreign price controls will make it harder for our member companies to bring these very few innovative medicines to market and chill investment into new cures and treatments.
On behalf of the nearly 88,000 life sciences employees in Illinois, iBIO will work with our sister organizations to support policy solutions that protect innovation while addressing the price patients pay at the pharmacy counter.