Keep pulling the thread on Mitali Desai.
The Inflation Reduction Act's Medicare drug price negotiation program will begin with 10 Part D drugs in 2026, add 15 more Part D drugs in 2027, add 15 Part B drugs in 2028, and add 20 new drugs annually from 2029 onwards.
The negotiated "maximum fair price" for drugs under the Inflation Reduction Act will represent a discount of 25% to 60% off their 2021 price, depending on the age of the drug.
The Inflation Reduction Act will eliminate the 340B savings spread for Medicare patients on negotiated drugs because Medicare reimbursement will be lowered to the new "maximum fair price".
The "maximum fair price" established by the Inflation Reduction Act will become the new "best price" in the 340B pricing formula, which will lower the 340B ceiling price for those drugs.
UMass Memorial Medical Center's analysis projects an annualized negative financial impact of $3.5 million from the Inflation Reduction Act's drug pricing provisions, based on the initial 10 drugs.
In UMass Memorial Medical Center's financial impact analysis of the IRA, the drug Enbrel accounted for 57% of the projected negative financial impact despite representing only 11% of the drug volume analyzed.
Merck and Teva are partially lifting their restrictive policies on 340B pricing for contract pharmacy arrangements in Louisiana in response to a new state law banning such limits.
Merck is partially lifting its 340B pricing restrictions for contract pharmacies in Arkansas, which was the first state to enact a law banning such limits.
Federal lawsuits are pending that challenge the 340B non-discrimination laws in both Arkansas and Louisiana.
A Health Resources and Services Administration (HRSA) audit for fiscal year 2023 found that Nefron Pharmaceuticals charged covered entities more than the ceiling price for some 340B drugs.
HRSA has ordered Nefron Pharmaceuticals to repay affected entities for 340B drug overcharges and to submit a corrective action plan to prevent future violations.
Approximately 70% of patients served by UMass Memorial Medical Center are covered by Medicaid, Medicare, or are self-pay.