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 ®.

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