The Inflation Reduction Act and Its Price Controls Means Less Patient Access to Medicine

The Inflation Reduction Act and its price controls continue to damage the pharmaceutical industry as they limit innovation and patient access. The House Energy and Commerce Committee recently announced an oversight hearing will be held this coming Wednesday titled, “At What Cost: Oversight of How the IRA's Price Setting Scheme Means Fewer Cures for Patients.”

The House Energy and Commerce Committee called for this hearing for a multitude of reasons. 

The IRA has a substantial influence on seniors and individuals with disabilities when it comes to their access to and options within Medicare Part D drugs. To be more precise, the provisions related to pricing could result in a reduction in available plans and restricted coverage for specific medications, thereby disrupting the extensive access to treatments enjoyed by numerous patients.

The Centers for Medicare and Medicaid are unclear on what impacts price controls and vague regarding how it will use the factors it most considers in setting prices. Even though a “gag clause” from an earlier version which would have prevented drug makers from discussing the price setting process has been removed, the agency still decided to withhold information on price setting methods, who it will work with, and limit how often manufacturers and The Centers for Medicare and Medicaid interact during the process, which only creates  more cause for transparency concerns among stakeholders.

As we know, a lack of funding and locked price controls stunt drug research and development. This stifles innovation, prevents better treatment in the future, and weakens America’s global competitiveness and leadership. 

TAPP is calling for a detailed examination of the legislation and a new approach to unfair price controls it includes. Follow the hearing and learn more here.