A recent executive order says that Medicare will pay the lowest price paid among a group of other economically advanced countries. These countries are called "the most favored nations".

What nations are on this list?


1 Answer 1


The report published by the Centers for Medicare & Medicaid Services (CMS) on the interim final rule with comment period (IFC) setting out the Most Favored Nation Model states on page 68 that the countries used to calculate the MFN price for the first quarter of year 1 will be Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Iceland, Ireland, Israel, Italy, Japan, Republic of Korea, Luxembourg, Netherlands, New Zealand, Norway, Spain, Sweden, Switzerland, and the United Kingdom.

In general, the nations that will be used to calculate the MFN price are defined as the member countries of the Organisation for Economic Co-operation and Development (OECD) as of October 1st, 2020 with a GDP per capita of at least 60% of that of the US, as determined by CMS quarterly.

  • Interesting to note that the list is pretty different from the G20 members list, while it has almost the same number of countries.
    – Déjà vu
    Nov 24, 2020 at 5:13
  • @e2-e4 well, it is hardly surprising that the list is different. In the G20, the EU as a whole is a single member, while in the OECD ranking EU member states are listed separately. In addition, sorting by GDP per capita favors smaller countries, while the G20 is mostly about large markets.
    – Hulk
    Nov 24, 2020 at 10:54
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    @Hulk While the EU is a G20 member, so are France, Germany and Italy in their own right. So it shouldn’t make that much difference.
    – Mike Scott
    Nov 24, 2020 at 12:39
  • @MikeScott There are only 9 individual entities that are members of both organisations: Australia, Canada, France, Germany, Japan, Mexico, Turkey, United Kingdom, United States. Of the 22 OECD countries meeting the GDP per capita criterium listed above, 10 EU countries (Austria, Belgium, Denmark, Finland, Ireland, Italy, Luxembourg, Netherlands, Spain and Sweden) are not individually members of the G20.
    – Hulk
    Nov 24, 2020 at 13:23
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    @Hulk Sure, but that’s because they’re too small to be in the G20, not because the EU is a G20 member.
    – Mike Scott
    Nov 24, 2020 at 14:12

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