Healthcare Economist January 8, 2026
Medicare Drug Price Negotiation aims to reduce the prices paid for high cost pharmaceuticals. Traditionally, biologic drug price reductions after loss of exclusivity (LOE) have occurred due to the introduction of biosimilar competitors. A recent paper by Beinfeld et al. 2025 examines whether Medicare Drug Price Negotiation enacted under the Inflation Reduction Act (IRA) is likely to reduce prices more than biosimilar entry.
Finding 1: Biosimilar entry reduces prices
Historically, biosimilar entry has lead to a 40.3% decrease in prices after LOE within five years of biosimilar launch.
How does this compare to projected price changes under Medicare Drug Price Negotiation. To answer this, the authors examine the projected prices changes for ustekinumab (Stelara). They use published estimates of IRA...
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