The Drug Access Will Be Destroyed by Inflation Reduction Act

Drug Pricing Provisions in the Inflation Reduction Act

President Joe Biden and Sen. Bernie Sanders recently celebrated their victory over “Big Pharma” at a White House event, touting the drug-pricing provisions in the Inflation Reduction Act.

False Premise of the IRA

However, the supposed triumph of Americans’ health through the IRA is misleading. The act prioritizes left-wing policy initiatives at the expense of pharmaceutical innovation and seniors’ access to new medications.

Expanding Damage

Biden and Sanders are now pushing for further expansion of the IRA’s drug-price provisions, which could worsen the situation.

Price Controls vs. Negotiation

The IRA’s “negotiation” process is essentially price controls, forcing drug companies to comply under threat of a 95% excise tax.

Unfulfilled Promises

The redirection of Medicare spending towards other priorities has not resulted in the affordability of medicines as promised by Biden and his allies.

Negative Impact on Innovation

Studies show that IRA-style price controls could significantly reduce new drug approvals, decrease research and development spending, and delay the introduction of new medicines.

Consequences of Expansion

Proposed expansions of price controls could lead to fewer new drug approvals, particularly impacting areas like neurology, oncology, and infectious diseases.

Global Comparison

Access to new drugs is more limited in Europe compared to the United States due to stricter price controls, resulting in avoidable deaths.

Impact on Healthcare Innovation

Implementing price controls in the US could stifle innovation, leading to scarcity of life-saving treatments and negatively impacting the economy.

Human Toll

The consequences of hindering drug discovery through price controls would be severe, affecting generations of patients and causing immeasurable harm.

Sally C. Pipes is president, CEO, and the Thomas W. Smith fellow in healthcare policy at the Pacific Research Institute. Her latest book is “False Premise, False Promise: The Disastrous Reality of Medicare for All,” (Encounter Books 2020). Follow her on Twitter @sallypipes. Read Sally Pipes’ Reports — More Here.

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Read More of this Story at – 2024-05-20 12:54:55

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