Medicare's drug price negotiation is of concern to industry, says GlobalData
The passing of the $740 billion Inflation Reduction Act, which aims to control and lower prescription drug costs, will be welcome news for patients feeling the repercussions of rising inflation and a cost-of-living crunch in the USA. However, GlobalData predicts that few pharma companies will be left unaffected by its provisions, with its full effects only being felt until 2026.
The Act includes the previously announced Centers of Medicare & Medicaid Services (CMS) drug price negotiation provisions, which will allow Medicare the power to negotiate with and supersede the pharmaceutical industry over drug pricing. These negotiated prices will come into effect in 2026.
GlobalData forecasts that total US pharmaceutical sales of prescription and non-prescription drugs are set to reach $624 billion in 2023. There is also the plan to invest in extending the expanded Affordable Care Act (ACA) provisions for three years, through to 2025.
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