Inflation Reduction Act Update – 2025
Curious about how the New Administration will impact the Inflation Reduction Act for the Pharma world? Here’s what I have found so far:
The Trump administration is anticipated to influence the Inflation Reduction Act (IRA) significantly, particularly concerning pharmaceutical provisions. A key focus is the Medicare Drug Price Negotiation Program, established under the IRA to allow Medicare to negotiate prices for certain high-cost drugs.
On January 20, 2025, President Trump rescinded Executive Order 14087, which was aimed at lowering prescription drug prices for Americans. This action indicates a potential shift in the administration’s approach to drug pricing reforms.
shontelbrown.house.gov
The pharmaceutical industry is actively engaging with the Trump administration to modify aspects of the IRA. Key proposals include extending the negotiation eligibility timeline for small-molecule drugs from 9 to 13 years and addressing issues related to pharmacy benefit managers (PBMs), such as curbing rebates and increasing transparency.
reuters.com
The administration has expressed a commitment to “greater transparency” in the Medicare drug price negotiation process. The Centers for Medicare and Medicaid Services (CMS) announced plans to involve stakeholders in refining the negotiation process, aiming to balance cost reduction with continued pharmaceutical innovation.
reuters.com
While the administration’s exact policy directions are still unfolding, these developments suggest a potential reevaluation of the IRA’s drug pricing provisions, with possible adjustments to negotiation timelines and increased transparency in the pharmaceutical sector.