Biden’s drug price push benefits patients
TL/DR –
The Inflation Reduction Act (IRA), despite being actively fought against by the drug industry, could potentially increase their sales due to its Part D section. The bill requires the industry to discount high-grossing drugs, making them more affordable for Medicare patients and potentially increasing the rate of prescriptions filled. The act has been praised by patients, with states and foundations that aid in drug payment also expected to save money and provide more drugs for more individuals.
Pharmaceutical Industry and the IRA
Despite fierce opposition from the drug industry, the IRA’s Part D component may ultimately increase pharmaceutical sales. The bill mandates additional discounts on top-selling drugs while enhancing affordability for Medicare patients, encouraging more frequent medication pickups, according to Stacie Dusetzina, a researcher from Vanderbilt University School of Medicine. She led a 2022 study revealing that lack of income subsidies halved the likelihood of cancer patients filling their prescriptions.
Organizations and foundations aiding patients with drug costs will save funds, allowing the procurement of more medication for more people. This is beneficial for pharmaceutical companies, notes Gina Upchurch, Senior PharmAssist’s Executive Director and a member of the Medicare Payment Advisory Commission.
Patient Relief
Retired nurse Lynn Scarfuto, 73, paid $1,157 for medications last year, with the Patient Access Network Foundation covering most of the annual $205,000 cost for her leukemia drug, Imbruvica. However, through the IRA, her medication expenses this year are nil, as the initial monthly Imbruvica payment by the foundation met all her obligations. Imbruvica, co-marketed by AbbVie and Janssen, a Johnson & Johnson subsidiary, is among the ten drugs subject to Medicare negotiations.
“For Medicare patients, the Inflation Reduction Act is a great, wonderful thing,” says Scarfuto. “I hope the negotiation continues as they have promised, adding more drugs every year.”
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