Most Favored Patient Act of 2026

The Most Favored Patient Act of 2026 mandates the Center for Medicare and Medicaid Innovation (CMMI) to implement and test a Most Favored Nations Pricing Model starting January 1, 2029. This five-year model aims to reduce drug costs by requiring manufacturers to provide covered drugs at prices based on international benchmarks. It applies to specific drugs sold in at least two designated reference countries. Under this model, specified manufacturers —those without a special "covered agreement" with the Secretary—must offer their covered drugs at the most-favored-nation price . This price is defined as the second-lowest net price for that drug in a list of eight reference countries, including Canada, Germany, and the United Kingdom, after adjusting for purchasing power differences. This pricing mechanism benefits eligible individuals covered by Medicaid, Medicare Part D, or Medicare Part B, as well as their pharmacies and providers. Manufacturers must also report detailed pricing information to the Secretary for price calculation. An exception allows the Secretary to temporarily suspend these requirements if a manufacturer is expected to enter a covered agreement by April 1, 2029. Such an agreement mandates the manufacturer to provide most-favored-nation pricing, report data, and significantly, commit to increasing manufacturing operations in the United States by December 31, 2028.