It is another real-world example demonstrating why the incoming Trump Administration should pause the price negotiation process and advocate for Congressional action to repeal CMS’ expanded price negotiation authority.
CMS recently announced the next 15 drugs that will be subject to price negotiations under the Inflation Reduction Act of 2022 (IRA). These are negotiations in name only because CMS can levy penalties on any manufacturer that fails to comply with the process. Since the penalties include an excise tax up to 95% of a drugs total U.S. sales revenue, the law essentially empowers CMS to set its desired prices (e.g. price controls).
Price controls discourage R&D spending. With less investment devoted toward discovering and developing new medicines, the pace of innovation will dramatically slow. Fewer breakthrough medications will reach the market harming patients who are depending on the development of these new drugs for their health and well-being.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.
The Dangers Hidden In CMS’ Drug Pricing Regulation
Wayne H Winegarden
It is another real-world example demonstrating why the incoming Trump Administration should pause the price negotiation process and advocate for Congressional action to repeal CMS’ expanded price negotiation authority.
CMS recently announced the next 15 drugs that will be subject to price negotiations under the Inflation Reduction Act of 2022 (IRA). These are negotiations in name only because CMS can levy penalties on any manufacturer that fails to comply with the process. Since the penalties include an excise tax up to 95% of a drugs total U.S. sales revenue, the law essentially empowers CMS to set its desired prices (e.g. price controls).
Price controls discourage R&D spending. With less investment devoted toward discovering and developing new medicines, the pace of innovation will dramatically slow. Fewer breakthrough medications will reach the market harming patients who are depending on the development of these new drugs for their health and well-being.
Read the entire op-ed.
Nothing contained in this blog is to be construed as necessarily reflecting the views of the Pacific Research Institute or as an attempt to thwart or aid the passage of any legislation.