August 29, 2023

Today, the Centers for Medicare & Medicaid Services (CMS) released their list of the first 10 drugs selected for Medicare price negotiations under the Inflation Reduction Act (IRA).Gerard Scimeca, Chairman of Consumer Action for a Strong Economy (CASE), issued the following statement on the implications of this development for American healthcare:

“CMS’ list of drugs slated for price ‘negotiation’ — a.k.a price controls — marks yet another step toward a government takeover of American healthcare.This list comes after CMS pushed through final guidance on the implementation of the IRA’s drug pricing provisions without consideration for the many concerns submitted by CASE and countless other stakeholders. In fact, CMS is set to shield the public from basic information, including their methodology for determining medicine prices in the price setting process.

“This kind of obstruction and opaque decision-making is unconscionable considering the clear risks posed to American consumers. Since President Biden signed the IRA into law last year,the looming threat of price controls has already taken its toll on medical innovation by driving away private investment. Many drug development projects are now stopped, severely limiting future access to potentially lifesaving medications.The next stage is unfortunately underway as Washington moves full steam ahead to ratchet up its leverage over the private sector. The impact on patients will only get worse.”