Statement from NPC's John O'Brien on CMS Announcement of Maximum Fair Price
For immediate release: August 15, 2024
Contact: Michael Pratt, 202-827-2088, [email protected]
Washington, DC – Today, the National Pharmaceutical Council (NPC) released the following statement from NPC's President and CEO, John M. O’Brien, PharmD, MPH:
"CMS told us the prices they’ve set for drugs millions use to stay healthy. We don’t yet know, in spite of what they said, what the impact for patients at the pharmacy counter will be. They didn’t offer specifics about what evidence they used, if they listened to patients or clinicians, or how they’ll protect patient access or out-of-pocket spending. And when they do it may be too late to inform the next round.
CMS’s actions impact the entire market, and can affect prices charged by private insurers and investment decisions in new medicines. Our research suggests the IRA will reduce the number of conditions new medicines are approved to treat and limit post-approval research used to establish treatment guidelines, while encouraging plans to limit access. We’ll be watching what happens over the coming months and conducting new research about the impact of this law."
Recent studies from NPC offer important findings about the Medicare Drug Price Negotiation Program's impact on patient access to treatments:
- Unintended Consequences of the Inflation Reduction Act: Clinical Development Toward Subsequent Indications; The American Journal of Managed Care
- How The IRA Could Delay Pharmaceutical Launches, Reduce Indications, And Chill Evidence Generation; Health Affairs Forefront
- Medicare Part D Coverage of Drugs Selected for the Drug Price Negotiation Program; JAMA Health Forum
- Section 50 of the Inflation Reduction Act Drug Price Negotiation Program: Considerations for the Centers for Medicare Medicaid Services, Manufacturers, and the Health Economics and Outcomes Research Community; Value in Health
- Breadth of Patient and Stakeholder Input in CMS's Drug Price Negotiation Program: A Content Analysis of the 2023 Patient-Focused Listening Sessions; Value in Health
Stakeholders can subscribe for updates to stay current on NPC's continued research and analysis on the impact of the Inflation Reduction Act's drug pricing provisions.
About the National Pharmaceutical Council
The National Pharmaceutical Council (NPC) is a health policy research organization dedicated to the advancement of good evidence and science, and to fostering an environment in the United States that supports medical innovation. Founded in 1953 and supported by the nation's major research-based pharmaceutical companies, NPC focuses on research development, information dissemination and education on the critical issues of evidence, innovation, and the value of medicines for patients. For more information, visit www.npcnow.org and follow NPC on LinkedIn.