Health Affairs October 10, 2024
The Inflation Reduction Act (IRA) of 2022 includes a complex set of provisions that will have the effect of reducing and reorienting federal spending on medicines for the elderly and disabled. The IRA marks a transformative shift in US policy by authorizing the Centers for Medicare and Medicaid Services (CMS) to implement a Medicare Drug Price Negotiation Program (MDPNP) to decrease spending on eligible drugs in Medicare Parts B and D by establishing a Maximum Fair Price (MFP) for them.
Recent CMS guidance outlines how the agency plans to review and consider factors related to comparative effectiveness evidence for the drugs subject to the MFP process and their therapeutic equivalents. Although CMS announced the first set of MFPs in August,...
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