{"id":4828,"date":"2026-08-23T16:35:45","date_gmt":"2026-08-23T16:35:45","guid":{"rendered":"https:\/\/hometransferguide.com\/?p=4828"},"modified":"2026-08-23T16:35:45","modified_gmt":"2026-08-23T16:35:45","slug":"biden-era-law-that-created-medicare-drug-price-controls-could-hike-up-prices-analysts-warn","status":"publish","type":"post","link":"https:\/\/hometransferguide.com\/?p=4828","title":{"rendered":"Biden-Era Law That Created Medicare Drug Price Controls Could Hike Up Prices, Analysts Warn"},"content":{"rendered":"
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Medicare\u2019s drug price controls could restrict Americans\u2019 ability to access care and potentially drive up costs in the long term, according to analysts.<\/p>\n

Read more Former Republican Kansas Sen Nancy Kassebaum Dies At 94<\/a><\/p>\n

The Inflation Reduction Act (IRA), signed into law by then-President Joe Biden in August 2022, authorized the U.S. federal government to negotiate prices for certain high-cost prescription drugs covered by Medicare through the Medicare Drug Price Negotiation Program. While congressional Democrats previously claimed the IRA would help bring down healthcare prices, analysts warned the Daily Caller News Foundation that such price controls might limit some patients\u2019 access to certain prescription medicines and impose cost burdens on Americans. (RELATED: What Is Causing US Prescription Drug Costs To Plummet?)<\/strong><\/p>\n

\u201cDespite the IRA\u2019s drug price controls being sold as a boon to consumers, the policy doesn\u2019t actually solve any of the health-policy problems people consider most important to them,\u201d Director of Health Policy at Americans for Tax Reform Isabelle Marchese told the DCNF. \u201cPrice controls don\u2019t eliminate cost or risk; they simply reallocate them in less efficient, less transparent ways. To protect their income, insurers and PBMs have, naturally, responded by tightening their utilization-management tools \u2014 prior authorization, quantity limits, formulary exclusions, and\/or preferred-status restrictions \u2014 on the drugs whose list or net prices have been artificially suppressed.\u201d<\/p>\n

\u201cThese results are inevitable consequences of price controls,\u201d Marchese continued. \u201cThey never make the underlying costs or risks disappear, they only force someone else (often, patients) to absorb them through more red tape, delayed care, and restricted access.\u201d<\/p>\n

Traditionally, a price control refers to a mandate that requires a business to reduce the price of its product to what the government deems an acceptable level, according to Americans for Prosperity. Throughout history, socialist countries have often imposed such controls.<\/p>\n

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Marchese went on to say that such price controls may further reduce patient access to select prescription drugs in the future.<\/p>\n

\u201cNot only will these price controls cause drug price hikes and limit access in the near future, but the long-term effects of this policy are even more devastating,\u201d she said. \u201cIn the near term, companies will raise launch prices on new drugs, accelerate price increases on non-selected products, and shift costs onto the commercial market that covers the majority of Americans under 65. In the long term, many of the high-risk, high-reward research projects that made the U.S. the world leader in biomedical innovation will never be started.\u201d<\/p>\n

The Centers for Medicare and Medicaid Services (CMS) released its first proposed rule in June to solidify regulations governing the IRA\u2019s Drug Price Negotiation Program for Initial Price Applicability Year (IPAY) 2029 and future years, according to Hogan Lovells Cadwalader.<\/p>\n

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After the coverage requirement for IPAY 2026-selected drugs went into effect during the first quarter of the year, 24% of first fill attempts for these drugs were initially rejected, which indicates \u201ca lack of material improvement for patient access,\u201d according to a recent analysis from IQVIA. This rejection rate was unchanged from 2025, per the report.<\/p>\n

CMS plans to issue the final rule to implement the Medicare Drug Price Negotiation Program for initial price applicability year 2029 and years thereafter in fall 2026, to a fact sheet. The agency also intends to issue final revised information collection requests on the data and information the Federal government will collect to inform drug selection and drug price negotiation and submit the collection to the Office of Management and Budget for final approval, per the fact sheet.<\/p>\n

Trump has previously criticized price controls and highlighted their longtime association with leftist regimes. <\/strong>In August 2024, Trump blasted then-Vice President Kamala Harris\u2019 proposal for a food price-gouging ban as \u201ccommunist\u201d price controls, NBC News reported.<\/p>\n

Despite this, some experts have previously compared Trump\u2019s May 2025 executive order aiming to broaden Americans\u2019 \u201caccess to the most-favored-nation price\u201d for prescription drugs to imposing such controls.<\/p>\n

Read more Supreme Court Announces 11th-Hour Intervention To Decide Fate Of Trump\u2019s East Wing Construction Blitz<\/a><\/p>\n

\u201d<\/strong>CMS is focused on delivering lower prescription drug costs for seniors while protecting taxpayers and preserving access to innovative treatments,\u201d A CMS spokesperson told the DCNF. \u201cAlthough the Medicare prescription drug market continues to adapt to significant changes enacted by Congress, CMS is closely examining emerging cost trends and using every available tool to promote affordability, competition, transparency, and responsible stewardship of taxpayer dollars.\u201d<\/p>\n

\u201cThis includes doubling the amount of estimated savings in the second year of the Medicare Drug Price Negotiation Program,\u201d the spokesperson added. \u201cThe Administration is committed to building a Medicare drug program that puts American patients first, securing better value, strengthening accountability across the system, and ensuring seniors have access to the medicines they need at prices they can afford.\u201d<\/p>\n

The White House did not respond to the DCNF\u2019s request for comment.<\/p>\n

A No Patient Left Behind (NPLB) survey published in March found that 92% of beneficiaries expect they will face higher out-of-pocket costs under the IRA. Meanwhile, 30% of beneficiaries said their Medicare Part D plan initially denied them access to a drug prescribed by their doctor, NPLB\u2019s research shows.<\/p>\n

The IRA \u201cis not delivering the outcomes that Democrats promised,\u201d according to Pacific Research Institute President and CEO Sally Pipes.<\/p>\n

\u201cThe IRA was sold as a way to make medicines more affordable and accessible, yet nearly one in four patients trying to start one of the first 10 price-controlled drugs was initially denied,\u201d Pipes told the DCNF. \u201cFor some of the sickest patients, the rejection rates were much higher. Initial rejection rates reached 67% for the selected oncology medicines and 59% for the immunology medicines, according to IQVIA data. Even a month after the initial attempt, 16% of oncology claims and 22% of immunology claims remained rejected.\u201d<\/p>\n

This \u201cunderscores the reality that government price controls have a negative impact on improving patients\u2019 access to medicines,\u201d Pipes added.<\/p>\n

Still, a KFF poll released in September 2024 found that 85% of voters backed letting the federal government negotiate prices for some prescription drugs for people enrolled in Medicare.<\/p>\n

Republican North Carolina Rep. Greg Murphy claimed in a July 8 X post that Americans\u2019 \u201caccess to care and critical drugs will be crushed\u201d by the IRA\u2019s Medicare Drug Price Negotiation Program.<\/strong><\/p>\n

Pipes also told the DCNF that the IRA may be \u201cdeterring companies from investing in medical research and development\u201d across the nation.<\/p>\n

\u201cI would not be surprised if these denial rates and utilization management continue to rise, as IRA price controls apply to a larger and larger number of medicines each year,\u201d she explained. \u201cBut arguably more important, the law is deterring companies from investing in medical research and development, which will have severe long-term consequences for Americans\u2019 physical and financial health.\u201d<\/p>\n

Read more Tennessee Hospital Patients Reportedly Paralyzed After Medication Mix-Up During Surgery<\/a><\/p>\n<\/div>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

Medicare\u2019s drug price controls could restrict Americans\u2019 ability to access care and potentially drive up costs in the long term, according to experts.<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[189,190,3945,555,3946,3890],"class_list":["post-4828","post","type-post","status-publish","format-standard","hentry","category-interesting","tag-affordability","tag-healthcare","tag-inflation-reduction-act","tag-joe-biden","tag-medicare","tag-prescription-drugs"],"yoast_head":"\nBiden-Era Law That Created Medicare Drug Price Controls Could Hike Up Prices, Analysts Warn - Home Transfer Guide<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/hometransferguide.com\/?p=4828\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Biden-Era Law That Created Medicare Drug Price Controls Could Hike Up Prices, Analysts Warn - 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