The Inflation Reduction Act of 2022 (IRA) was signed into law by President Biden on August 16, 2022. While BioNJ is pleased with several provisions included in the IRA, our organization was very disappointed to see the inclusion of a “price-setting” structure through direct negotiation in Medicare.
Several provisions in the IRA deserve recognition for how they will help Patients afford and access their medications, including the cap on out-of-pocket costs to Medicare beneficiaries and the expansion of the low-income subsidy program. However, federal policymakers ignored the significant negative implications of government drug price setting policies on healthcare innovation in the IRA, missing an opportunity to further lower the costs that Patients pay for their treatments at the pharmacy counter.
BioNJ will continue to advocate for modifications to the IRA, particularly the removal of the price control provisions in the direct negotiation in Medicare. BioNJ looks forward to continuing to work with policymakers and all stakeholders to ensure that treatments are more affordable, that medical innovation continues, and that Patients have access to the therapies they need – Because Patients Can’t Wait ®.
Click on the resources below to learn more.
Suggested Resources
News Media
- Barron’s: Price Negotiations Are About to Reshape the Drug Industry
- Reuters: Drug Companies Favor Biotech Meds Over Pills, Citing New U.S. Law
- Bloomberg: Pharma Companies Say New Drug Price Law Leaves Them in Limbo
- Biopharma Dive: Pharma Earnings Outline Drug Law’s Looming Impact on Sales, Development
- Becker’s Hospital Review: Inflation Reduction Act Will Restrict Oncology Drug Development, Bristol-Myers Squibb CEO Says
- Scrip: US Pricing Reform Puts Cancer Drug Innovation At Risk, Drug Leaders Warn
- Fierce Pharma: Amgen CEO Robert Bradway warns Biden’s Inflation Reduction Act Could Blunt Future Biotech Success Stories
- Bloomberg: AstraZeneca CEO Warns US Pricing Rules Will Delay New Drugs
Research
- Vital Transformation: Build Back Better Act: Total Market Impact of Price Controls in Medicare Parts D and B
- University of Chicago Harris School of Public Policy: The Impact of Recent White House Proposals On Cancer Research
- Avalere: More than 100 Drugs May Be Eligible for Negotiation Under BBBA by 2030
- Charles River Associates: Assessing the Implications of Centralized Drug Price Setting to Investment in Clinical Development for HIV Treatments
Third-Party Viewpoints
- Vital Health Podcast: Price Controls Put US Biopharma at Risk
- The Readout Loud (Podcast): Vas Narasimhan on the Future of Pharma, Plus Moderna’s Promise & a Biotech Presidential Bid
- RealClearPolicy (Opinion): The State of Drug Development in America is Strong, But the IRA Unintentionally Weakens It
- Washington Examiner (Opinion): The White House’s Nonsensical Cancer Policies
- American Enterprise Institute (AEI) (Blog): Inflation Reduction Act: Discussion About the Mixed Effect on Costs for Drugs with Amitabh Chandra and Craig Burton
- Health Affairs (Opinion): Drug Pricing Reform In The Inflation Reduction Act: What Are The Implications? Part 2
- Health Affairs (Opinion): Drug Pricing Reform In The Inflation Reduction Act: What Are The Implications? Part 1
- New Jersey Business Magazine (Opinion): A Missed Opportunity for Patients and for Medical Innovation
- The Hill (Opinion): President Biden’s Unintended War on Cancer Patients
- Washington Times (Opinion): Inflation Reduction Act Breaks the Prescription-Drug Pipeline
