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The Inflation Reduction Act: What can stakeholders expect?

• For the first time, the federal government will negotiate prices for a select subset of drugs covered by Medicare Part B and Part D, creating a new maximum fair price (MFP). According to the Congressional Budget Office, net prices for drugs selected for negotiation could decrease by 50%. Manufacturers must participate in this negotiation or face penalties.
• Manufacturers will now be required to pay inflation rebates to Medicare Part B and Part D, adding new government-mandated pricing concessions to an already complex system of drug discounts.

• Greater risk of duplicate or even triplicate discounts, leading to higher revenue leakage
• Increased impact on gross-to-net and more uncertainty in financial forecasting
• Higher demand on operations teams tasked with processing invoices and disputing noncompliance

• Additional compliance procedures required of already busy teams
• Access to lower prices on some drugs, since covered entities will be able to choose between the 340B price and the MFP
• Reduced 340B revenues on MFP drugs due to lower reimbursements from Medicare

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Launch into 46brooklyn's exploration of brand drug launch prices

• Overall, launch prices are trending upward… but not as much as the 46brooklyn team expected they might. Inflation rates and year-to-year variations in the data provide a mixed picture.
  
• The data suggests that, beginning in 2019, launch prices may have started playing a more significant role in overall pricing strategies, but it’s too early to truly call this a trend.
• Eight out of 10 products in the dashboard have taken a price increase since launch. Most have seen price increases above 1% but no more than 22%.
  
• Neither launch prices nor list prices give an accurate picture of what patients actually pay for drugs, which is arguably the most important data point when it comes to drug pricing.
  

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What do Washington, D.C., and Las Vegas have in common?

• Look for AXS23 to cover treatment advancements, market access and the specialty pharmacy outlook. Additional sessions will focus on the Inflation Reduction Act's implementation and the new law's impact on patient financial assistance.
  
• Kalderos will have a presence at AXS. If you're attending, find us on the convention floor during the day and doubling down on 11 on the casino floor at night. ♠

• This gathering of government pricing experts will deliver the latest insights on government pricing trends and best practices.
  
• Never missing a chance to talk complex regulatory drug discount guidelines 😉, a number of Kalderonians will converge on the Omni Shoreham Hotel in Washington, D.C., for Medicaid and GP 2023. You can find us out on the exhibitor hall, in an IRA-focused closed-door panel on May 17, and probably enjoying a plate of truffle fries at the Marquee Bar & Lounge.