President Biden’s Inflation Reduction Act is just eight months old. It hasn’t yet slayed inflation. But it’s already gutting drug research and development.
The law gives Medicare the power to impose price controls on certain prescription drugs for the first time. By September, federal officials will select the first 10 medicines subject to price-setting from those covered by the Medicare Part D prescription drug program. The price caps for these drugs will go into effect in January 2026.
In the months leading up to the IRA’s passage, biopharmaceutical innovators and investors warned that price controls would scare away investment in drug research. And they’re being proved right.
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.
Thank the IRA for Cuts to Critical Drug Research
Sally C. Pipes
President Biden’s Inflation Reduction Act is just eight months old. It hasn’t yet slayed inflation. But it’s already gutting drug research and development.
The law gives Medicare the power to impose price controls on certain prescription drugs for the first time. By September, federal officials will select the first 10 medicines subject to price-setting from those covered by the Medicare Part D prescription drug program. The price caps for these drugs will go into effect in January 2026.
In the months leading up to the IRA’s passage, biopharmaceutical innovators and investors warned that price controls would scare away investment in drug research. And they’re being proved right.
Click to read the full article in DC Journal, an Inside Sources publication.
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.