Advisory Board September 21, 2023
Last month, CMS released a list of the first 10 drugs that will be eligible for Medicare price negotiations under the Inflation Reduction Act (IRA). And while these government negotiations may create a “spill-over” effect and allow employers to also negotiate better prices, others worry they may end up increasing costs for commercial health plans as drug manufacturers try to make up their margins, Sara Hansard writes for Bloomberg Law.
Background
The IRA was signed into law August 2022 and includes several drug pricing provisions. Under the IRA, Medicare will be able to negotiate certain prescription drug prices with pharmaceutical companies. This provision will initially apply to...