By NextBestFitTask 1.9.2 of 7
Year-1 interim prices: Medicare negotiated prices where they exist; elsewhere the lower of Medicaid's net price + 10% or the median price in 11 reference countries + 20%.
Who does it
Formulary Board
When
Month 6–12
Trade-off
Interim reference prices give immediate savings but may be challenged as arbitrary before full negotiation.
Part of: Create the national formulary & negotiate drug prices
A National Formulary and Pricing Board covers every FDA-approved drug with a negotiated price. Retail drug spending falls from $467.0B to $380.1B (price effect −$113.1B, utilization +$26.2B).
This step changes 10 existing laws, programs, or institutions. See the list.