Following the Biden Administrations roll out of the first drug price cuts negotiated by Medicare earlier this month under a new authority granted by the Inflation Reduction Act, reactions have been mixed as many are uncertain as to how the mandate will make an impact moving forward.
The industry lobbying group PhRMA warned of the potentially dire consequences Medicare’s new powers may levy on drug research and access in a recently issued public statement that claimed that the threat of lower prices for Medicare drugs may impact private funding, as the funds could dry up, research incentives could shift and could result premiums for Medicare to rise.
“The ironically named Inflation Reduction Act is a bad deal being forced on American patients: higher costs, more frustrating insurance denials and fewer treatments and cures for our loved ones,” PhRMA said in an official statement.
“The administration is using the IRA’s price-setting scheme to drive political headlines, but patients will be disappointed when they find out what it means for them” PhRMA President and CEO Steve Ubl stated (read the full statement here).
“There are no assurances patients will see lower out-of-pocket costs because the law did nothing to rein in abuses by insurance companies and PBMs who ultimately decide what medicines are covered and what patients pay at the pharmacy. The ironically named Inflation Reduction Act is a bad deal being forced on American patients: higher costs, more frustrating insurance denials and fewer treatments and cures for our loved ones.”
