H.R. 7837

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7837 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7837

To amend title XI of the Social Security Act to require the Center for 
Medicare and Medicaid Innovation to test a model implementing most-
favored-nation drug pricing.

_______________________________________________________________________

March 5, 2026

Mr. Meuser introduced the following bill; which was referred to the 
Committee on Energy and Commerce, and in addition to the Committee on 
Ways and Means, for a period to be subsequently determined by the 
Speaker, in each case for consideration of such provisions as fall 
within the jurisdiction of the committee concerned

_______________________________________________________________________

A BILL

To amend title XI of the Social Security Act to require the Center for 
Medicare and Medicaid Innovation to test a model implementing most-
favored-nation drug pricing.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Most Favored Patient Act of 2026''.

SEC. 2. REQUIRING THE CENTER FOR MEDICARE AND MEDICAID INNOVATION TO 
TEST A MODEL IMPLEMENTING MOST FAVORED NATION DRUG 
PRICING.

Section 1115A of the Social Security Act (42 U.S.C. 1315a) is 
amended--
(1) in subsection (b)(2)(A), by inserting ``, and, 
beginning January 1, 2029, shall include the Most Favored 
Nations Pricing Model described in subsection (h)'' before the 
period at the end; and
(2) by adding at the end the following new subsection:
``(h) Most Favored Nations Pricing Model.--
``(1) In general.--For purposes of subsection (b)(2)(A), 
the Most Favored Nations Pricing Model described in this 
subsection is a model under which, subject to paragraph (2), 
each specified manufacturer--
``(A) provides access to the most-favored-nation 
price of each covered drug of such manufacturer--
``(i) to most-favored-nation price eligible 
individuals who with respect to such drug are 
described in clause (i) of paragraph (5)(D) and 
are dispensed such drug (and to pharmacies, 
mail order services, and other dispensers, with 
respect to such individuals who are dispensed 
such drugs); and
``(ii) to hospitals, physicians, and other 
providers of services and suppliers with 
respect to most-favored-nation price eligible 
individuals who with respect to such drug are 
described in clause (ii) of such paragraph 
furnished or administered such drug; and
``(B) reports to the Secretary, at such time and in 
such manner as the Secretary shall specify, such 
information as the Secretary determines necessary for 
purposes of calculating the most-favored-nation price 
with respect to each such covered drug.
``(2) Exception.--The Secretary may suspend the 
requirements under paragraph (1) with respect to a covered drug 
of a specified manufacturer until April 1, 2029, if the 
Secretary reasonably believes that such manufacturer is likely 
to enter into a covered agreement with the Secretary before 
such date.
``(3) Duration.--The model described in paragraph (1) shall 
be carried out for a period of 5 years.
``(4) Definitions.--In this subsection:
``(A) Applicable net price.--The term `applicable 
net price' means, with respect to a covered drug and a 
reference country in which such drug was sold during a 
year, the average price paid to the manufacturer for 
the drug across package sizes and package types of the 
drug in such reference country during such year across 
all purchasers, taking into account all manufacturer 
rebates, discounts, and price concessions, and adjusted 
to take into account differences in purchasing power in 
such country compared to the United States in a manner 
specified by the Secretary.
``(B) Appropriate congressional committees.--The 
term `appropriate congressional committees' means--
``(i) the Committee on Energy and Commerce 
and the Committee on Ways and Means of the 
House of Representatives; and
``(ii) the Committee on Finance and the 
Committee on Health, Education, Labor, and 
Pensions of the Senate.
``(C) Covered agreement.--The term `covered 
agreement' means an agreement between a manufacturer of 
a covered drug and the Secretary that--
``(i) provides that such manufacturer--
``(I) will provide access to the 
most-favored-nation price of 1 or more 
covered drugs of such manufacturer in 
the same manner as described in 
paragraph (1)(A);
``(II) will report to the Secretary 
the information described in paragraph 
(1)(B) with respect to each such drug; 
and
``(III) commits, to the 
satisfaction of the Secretary, to 
increasing manufacturing operations in 
the United States; and
``(ii) is--
``(I) entered into not later than 
December 31, 2028; and
``(II) reported by the Secretary to 
the appropriate congressional 
committees--
``(aa) not later than April 
1, 2029; or
``(bb) in the case that 
such agreement was entered into 
before the date of the 
enactment of the Most Favored 
Patient Act of 2026, not later 
than the date that is 30 days 
after such date of enactment.
``(D) Covered drug.--The term `covered drug' means, 
with respect to a year, a specified drug that was sold 
in 2 or more reference countries during such year.
``(E) Manufacturer.--The term `manufacturer' has 
the meaning given such term in section 1847A(c)(6)(A).
``(F) Most-favored-nation price.--The term `most-
favored-nation price' means, with respect to a covered 
drug and a year, the second-lowest applicable net price 
for such drug.
``(G) Most-favored-nation price eligible 
individual.--The term `most-favored-nation price 
eligible individual' means, with respect to a covered 
drug--
``(i) in the case such drug is dispensed to 
the individual at a pharmacy, by a mail order 
service, or by another dispenser, an 
individual--
``(I) who is eligible for medical 
assistance under a State plan (or a 
waiver of such plan) under title XIX if 
coverage is provided under such plan 
(or waiver) for such covered drug; or
``(II) who is enrolled in a 
prescription drug plan under part D of 
title XVIII or an MA-PD plan under part 
C of such title if coverage is provided 
under such plan for such covered drug; 
and
``(ii) in the case such drug is furnished 
or administered to the individual by a 
hospital, physician, or other provider of 
services or supplier, an individual who is 
enrolled under part B of title XVIII, including 
an individual who is enrolled in an MA plan 
under part C of such title, if payment may be 
made under part B for such selected drug.
``(H) Reference country.--The term `reference 
country' means any of the following countries:
``(i) Canada.
``(ii) Denmark.
``(iii) France.
``(iv) Germany.
``(v) Italy.
``(vi) Japan.
``(vii) Switzerland.
``(viii) The United Kingdom.
``(I) Specified drug.--The term `specified drug' 
means--
``(i) a covered outpatient drug (as defined 
in section 1927(k));
``(ii) a drug or biological product for 
which payment may be made under part B of title 
XVIII; or
``(iii) a covered part D drug (as defined 
in section 1860D-2(e)).
``(J) Specified manufacturer.--The term `specified 
manufacturer' means a manufacturer of a covered drug 
that does not have a covered agreement with the 
Secretary.''.
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