Implications of Medicare Negotiation and Most-Favored-Nation Pricing for Cancer Medicine Costs

In this cohort study of brand-name cancer drugs in Medicare Part B and Part D, applying most-favored-nation (MFN) pricing tied to international benchmarks in 2024 could have reduced Medicare drug spending by an incremental 28-41% compared to Medicare negotiation alone. However, the long-term sustainability of MFN savings is uncertain given the potential for manufacturer gaming, and policymakers should explore sharing savings with patients by eliminating out-of-pocket costs for highly effective therapies.