Pharma trade group urges US Congress to oppose Inflation Reduction Act

Pharmaceutical Research and Manufacturers of America (PhRMA), a trade group representing pharma in the USA, has issued a letter urging Congress to reject the Inflation Reduction Act as passing it would lead to decreased access to innovative drugs.

The act would allow Medicare, a federal health insurance program for people aged 65 years or older and those with certain disabilities, to negotiate prescription drug prices and extend the expanded Affordable Care Act program for three years, through 2025.

PhRMA argues in the letter: "Proponents are driving the bill under the guise that it will allow Medicare to “negotiate” with biopharmaceutical companies. What the bill actually does is give manufacturers non-negotiable ultimatums – accept whatever price the Secretary of Health and Human Services sets, pay a massive excise tax of as much as 95% of a medicine’s sales or remove all of your products from Medicare and Medicaid. That’s not negotiation, it’s government price setting."