ARTICLE | Politics, Policy & Law

IRA: how low will they go?

The IRA gives the HHS Secretary a lot of discretion over ‘negotiated’ Medicare drug prices

December 19, 2022 7:57 PM UTC

The Inflation Reduction Act creates ceilings but does not create floors for prices CMS sets, or “negotiates,” with drug companies. It also gives the Medicare agency a great deal of discretion over price-setting policies and limits judicial review of its decisions.

Leaders of companies making drugs that will be subject to the IRA’s price-setting provisions assume CMS will crash through the ceiling, establishing rock bottom prices. ...