Today signifies the unveiling of the 10 medications that the Centers for Medicare & Medicaid Services (CMS) will engage in direct negotiations with pharmaceutical companies to determine drug pricing for. This occasion had been anticipated with unease by numerous pharmaceutical companies, given the surge in legal actions witnessed over recent months in relation to this facet of the Inflation Reduction Act (IRA). Enacted by President Biden in August 2022, the IRA serves as a strategy to curtail healthcare expenses by lowering prescription drug prices.
Many of the pharmaceutical companies that have come forward arguing the legality of this provision have medications featured within the selected 10, including AstraZeneca, Boehringer Ingelheim, Merck, BMS, and J&J. As per CMS, the selection of these drugs stems from their position among the medications incurring the most significant total Part D gross covered prescription drug expenses. Anticipated negotiations are slated to continue until August 2024, and the revised drug pricing will come into play in 2026.
As this negotiation unfolds, the general public will be able to contribute data and insights on the chosen medications until October 2, 2023. Subsequent meetings will be convened with the involved pharmaceutical companies. By February 2024, preliminary price proposals will be dispatched, in which CMS claims to assess variables including research and development costs, as well as production and distribution expenses pertaining to the selected drug. Amidst ongoing discussions within the backdrop of IRA-related controversies, the trajectory of drug pricing regulation remains uncertain.