The recently passed Inflation Reduction Act gives the Center for Medicaid and Medicare Services (CMS) the power to negotiate drug prices, which had only been allowed for private companies and health plans previously.
The good news is the Inflation Reduction Act, which puts a $35 cap on monthly insulin prices, went into effect on Jan. 1. The bad
Whenever Congress or state legislatures start talking about capping high drug costs or other legislative solutions, pharmaceutical companies argue that these laws are counterproductive. They argue that they must charge exorbitant prices for new drugs because it pays for the next class of cures.
What makes a drug fall into the “specialty” drug category is a combination of several factors. First, they tend to be very expensive. This is because they were recently approved, meaning they are under an active patent with no generic or biosimilar version available.
The Inflation Reduction Bill passed the House last November (2021) then it hit the Senate and stalled. After a long pause and some wheeling and dealing, it squeaked by in the Senate on August 7th. Then, it flew back through the House on Friday the 12th and now, will be signed by the President in the coming days. Now that it has passed the legislature, here is what you need to know about how the Inflation Reduction Bill will impact healthcare:
And, we are waiting…
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