The IRA: Reducing Inflation Or Threatening Patient Access?

The Inflation Reduction Act (IRA) aims to lower prescription drug costs by capping Medicare beneficiaries' out-of-pocket spending and introducing the Medicare Drug Price Negotiation (MDPN) program. However, the MDPN program is coercive, creating a government price-setting scheme that threatens access to medicines for millions of Medicare and Medicaid beneficiaries. Click here for article.

1. MDPN Program: Under the MDPN program, CMS informs manufacturers of Medicare's Maximum Fair Price (MFP), and failure to comply could lead to severe penalties, including excise taxes or removal from Medicare and Medicaid programs.

2. Policy Shift: The MDPN program marks a significant shift in U.S. policy towards government price-setting, unlike European countries where drug prices are set but access to medicines isn't threatened in the same way.

3. European Comparison: European countries set drug prices but don't threaten access to multiple medicines for millions of patients over disputes about one drug's price, unlike the IRA's MDPN program.

4. Impact on Patients: The IRA's MDPN program presents untenable options for manufacturers and patients, risking access to medicines for millions of Medicare and Medicaid beneficiaries.