International Reference Pricing
Importing foreign pricing models threatens U.S. patient access and innovation.
What’s Happening
The International Reference Pricing (IRP) is a proposed policy framework that would tie Medicare Part B drug reimbursements to the prices paid by foreign governments.
While intended to lower costs, this approach fails to account for the unique structure of the U.S. healthcare system—and risks severely disrupting provider-administered care.
Under this model, government-set prices from countries with vastly different healthcare systems and economic structures would influence what U.S. providers are paid to purchase and administer Part B medications.
Who it affects
Part B drugs are typically used to treat serious and complex conditions, including:
These patients often require in-office treatments that are time-sensitive, personalized, and closely monitored. IRP proposals could make those treatments harder to access, and harder for providers to sustain.
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Cancer
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Rheumatoid arthritis
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Inflammatory Bowel Disease
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Autoimmune diseases
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Mental illness
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Eye diseases
Why it Matters
While the goal of reducing drug prices is important, importing foreign pricing models creates serious consequences
Ultimately, this policy would transfer cost control burdens to frontline providers, those least equipped to absorb them, and may limit access to leading-edge treatments in the U.S.
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Mismatch with U.S. Healthcare
U.S. providers do not operate in the same system as public hospitals abroad. IRP would apply rigid pricing without adjusting for local costs, regulatory compliance, or overhead.
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Unsustainable for Providers
Physicians may no longer be able to afford to offer certain therapies, especially in small or rural practices already facing thin margins.
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Reduced Patient Access
Patient access would decline as fewer providers are able to carry or administer high-cost therapies at the government-mandated rates.
The Financial implications
Proposed international pricing models could lead to drastic reductions in reimbursement, forcing independent practices to close and delaying access to critical therapies.
The data reveals the real-world consequences for providers—and the patients they serve.
Legislative Solution
While no standalone legislation has yet formalized IRP in Medicare Part B, proposals that include international reference pricing continue to resurface in broader budget and reform bills.
The Part B Access for Seniors and Physicians Coalition advocates for:
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Rejection of international reference pricing models in Medicare Part B
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Reimbursement policies that reflect the real-world cost of care in the U.S.
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Safeguards for physician-administered treatment access across all care settings