Health Affairs January 17, 2024
The 2022 Inflation Reduction Act (IRA) contains multiple provisions related to high-cost branded prescription drugs used by Medicare beneficiaries. One provision, effective in 2025, will cap Part D patient out-of-pocket cost sharing at $2,000 per year. A second provision, effective in 2026, will allow Medicare to negotiate lower prices with the companies selling selected high-expenditure branded drugs. Negotiations with companies selling the initially targeted drugs will take place in 2023 and 2024, with negotiated prices going into effect in 2026.
Beyond improving the financing of Medicare, the provisions of the IRA are intended to “make Americans able to afford to take the medications that could save their lives.” “Affordability” implies that lower beneficiary out-of-pocket costs will lead to increases in...
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