Washington, DC, Aug. 29, 2023 (GLOBE NEWSWIRE) -- Today, the Centers for Medicare & Medicaid Services announced the first 10 Medicare Part D drugs selected for government price setting under the Inflation Reduction Act.
Incubate Coalition executive director John Stanford issued the following statement:
"Today is a regrettable milestone in the implementation of the Inflation Reduction Act's price control provisions, which will result in harmful reductions in biomedical innovation while failing to address the root causes of high out-of-pocket costs.
Government price setting throws a wrench in the successful market-based drug development ecosystem that patients count on to deliver life-saving therapies. The uncertainty created by price controls will force many early-stage life sciences investors to direct their funds elsewhere.
Seven of the ten drugs named by CMS for government price setting are small molecules. Numerous biotech companies have already scaled back research into experimental small-molecule treatments due to the IRA’s arbitrary price-setting timelines.
Targeting small-molecule drugs for price controls earlier than biologics will force life sciences firms to reconsider a broad array of risky projects, including developing cutting-edge small-molecule therapies for a range of diseases from cancer to Alzheimer's.
CMS has failed to meaningfully address or mitigate the perverse incentives created by the IRA. But Incubate remains willing to work alongside policymakers to address these challenges and minimize the resulting impact on innovation. We look forward to the opportunity to educate policymakers about the impacts of this new program and areas for needed improvement."
Government-set prices for the first 10 Medicare Part D drugs will take effect in 2026. CMS will select another 15 Part D drugs for price setting in 2025, another 15 Part B and Part D drugs in 2026, and another 20 Part B and Part D drugs in subsequent years.
###
About Incubate
Incubate is a 501(c)(4) organization of venture capital firms representing the patient, corporate, and investment communities. Our primary aim is to educate policymakers on the role of venture capital in bringing promising treatments to patients in need.
