Inflation Reduction Act (IRA) and CMA Price Negotiation Program
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.
Resources
- Learn more about IRA’s MDPNP and other programs in our webinar “An Advocate’s Guide: Medicare 2025 and IRA Implementation – Empowering Patient Voices Summary” summary HERE.
- US drug pricing overhaul: The Inflation Reduction Act (IRA) and the Executive Order (EO) on Most-Favored-Nation (MFN) drug pricing in focus
- Analyzing the expansion of the Medicare drug price negotiation program to Part B
- The list of 15 Part D drugs selected for the second round of price negotiation (by KFF)
- CMS Guidance and Policy Documents