The Inflation Reduction Act (IRA) Medicare Drug Price Negotiation Program (MDPNP) directs the Secretary of Health and Human Services (HHS) to set a maximum price for certain drugs in Medicare. The MDPNP is expected to reduce the pharmaceutical company revenues in Medicare from a selected drug, as the price set by the federal government in Medicare will be below the level achieved in the absence of the MDPNP.
In this paper sponsored by Pfizer, CRA’s Kirsten Axelsen, Rajini Jayasuriya, Laura Jenkins, and Yamini Jena simulate the effect of the IRA MDPNP on a set of cancer medicines in Medicare to estimate the magnitude and type of clinical study that would have been lost if this policy had been in place historically. The authors consider policy remedies that Congress and the Centers for Medicare & Medicaid Services can implement to reduce the potential negative consequences on clinical development and patient access to innovative cancer treatments in the future.
Read more about the implications of the Inflation Reduction Act for cancer medicine development
