Inflation Reduction Act (IRA)
In 2022, the Inflation Reduction Act (IRA) was signed into law. It had several patient-positive initiatives including an ability to spread patient copays over the year, lower costs for insulin, and a $2000 cap on copays. However, the IRA also allowed Medicare to negotiate directly with drug companies to ideally lower prices for the costliest single-source brand-name Medicare Part B and Part D medications. On the surface, the Medicare Drug Price Negotiation Program (MDPNP) looks good, but it is a new policy, and the long-term impact is not yet fully understood. We have asked Congress to carefully evaluate the program’s outcomes before expanding its scope, accelerating timelines, or extending negotiated prices to the commercial market. The concern is there may be unforeseen consequences such as less innovation, diversion of costs and medications, fewer medications available, or loss of access to the variety of medications that help patients. A measured, evidence-based approach is essential to ensure patients are not adversely affected by untested processes. Read more about IRA’s MDPNP and other programs in our webinar summary HERE.