The Centers for Medicare & Medicaid Services (CMS) recently issued an inaugural list of drugs selected for price setting under the Inflation Reduction Act of 2022 (IRA) on August 29. The enactment of IRA has put forth a new pricing landscape for prescription drugs – a reality that the world’s biggest corporations and law firms must consider.
The selected drugs for this initial list include Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and Fiasp. This move by CMS is a proactive effort to control the inflation rate affecting the cost of these widely prescribed drugs.
This implementation may have significant impact on pharmaceutical companies and healthcare professionals as it provides government oversight on the pricing of these specific drugs. As the IRA continues to roll out, the implications for the future pricing of new and current pharmaceuticals are extensive.
Corporations need to strategize their compliance plans effectively to navigate these pricing changes while still achieving business objectives. Law firms too must adapt their legal due diligence and advice to account for these shifts in the pricing landscape.
Managing the legal and economic implications of the IRA is challenging and requires understanding the business strategy impacted by drug pricing, fostering cross-sector collaboration with all stakeholders, and maintaining regulatory compliance. As such, developing effective arguments for the pricing of these selected drugs has never been more significant for both parties.
Legal professionals are expected to monitor these changes closely, advise their clients accordingly, and stay ahead of the consequences that these new pricing guidelines could introduce.