Health Affairs April 9, 2024
The Centers for Medicare and Medicaid Services (CMS) is now implementing its first round of Medicare drug price negotiations under the Inflation Reduction Act (IRA), recently sending initial offers to manufacturers of the 10 selected drugs covered under Medicare’s Part D. The IRA allows for negotiations between CMS and the manufacturer through August 1, 2024, with CMS publishing the results of those negotiations—or the maximum fair price (MFP) for each drug—by September 1, 2024, for implementation in 2026.
The IRA leaves significant discretion to CMS to design a negotiation framework that will affect the extent of saving achievable for any drug. In contrast to typical agency implementation of new laws, the program’s tight implementation timeline does not allow for notice-and-comment...
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