Abstract
The 2022 Inflation Reduction Act (IRA) was introduced to contain Medicare spending. A key feature of the Act was the introduction of mandated price discount/negotiations of at least 25% for selected therapies that have been on the market at least 9-13 years. However, the IRA includes several exemptions excluding therapies from these discounts/negotiations e.g., therapies with less than $200M in annual Medicare spending, biosimilar or generic entrants available, only a single orphan indication, and those that are vaccines or plasma-derived. The present research seeks to assess how much these exemptions may impact the law’s ability to contain Medicare spending.
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