The inclusion of the Orphan Cures Act in the One Big Beautiful Bill may ward off some of those potential losses. But making a single exemption to the IRA is not enough. Congress must roll back price controls on prescription drugs altogether.
Buried within the One Big Beautiful Bill Act, which President Donald Trump signed into law July 4, is a provision that could improve or even save the lives of the 30 million Americans suffering from rare diseases.
That provision is the Orphan Cures Act, which exempts certain drugs that treat rare diseases from the scheme of price controls Democrats established in Medicare as part of the 2022 Inflation Reduction Act. The first round of price controls takes effect on ten medicines dispensed through the Part D drug benefit in January 2026.
This exemption is common sense. Why should federal policy discourage companies from investing in drugs that treat rare diseases—defined as those that afflict fewer than 200,000 Americans per year—by threatening them with price controls?
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
The Big Beautiful Bill Fixes One Drug Problem—But Highlights An Even Bigger One
Sally C. Pipes
The inclusion of the Orphan Cures Act in the One Big Beautiful Bill may ward off some of those potential losses. But making a single exemption to the IRA is not enough. Congress must roll back price controls on prescription drugs altogether.
Buried within the One Big Beautiful Bill Act, which President Donald Trump signed into law July 4, is a provision that could improve or even save the lives of the 30 million Americans suffering from rare diseases.
That provision is the Orphan Cures Act, which exempts certain drugs that treat rare diseases from the scheme of price controls Democrats established in Medicare as part of the 2022 Inflation Reduction Act. The first round of price controls takes effect on ten medicines dispensed through the Part D drug benefit in January 2026.
This exemption is common sense. Why should federal policy discourage companies from investing in drugs that treat rare diseases—defined as those that afflict fewer than 200,000 Americans per year—by threatening them with price controls?
Read the Forbes op-ed here.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.