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Biden Administration Medicare Negotiation Framework will Reduce Costs and Encourage Innovation

By March 15, 2023No Comments

Washington, DC – Today, the Centers for Medicare & Medicaid Services (CMS) released a proposed framework to guide the negotiation of drug prices under Medicare – a key part of the Inflation Reduction Act. CMS announced it will consider the drug’s clinical benefits to patients including whether the drug meets an unmet need and the selected drug’s impact on specific populations, recognize and encourage innovation, look at drugs with common active ingredients, and develop a process for engaging drug manufacturers in a multi-step price negotiation.

Protect Our Care Chair Leslie Dach issued the following statement: 

“The administration has created a thoughtful and comprehensive approach to the Medicare drug negotiation process that will reduce costs for America’s seniors, encourage innovation, and treat drug companies fairly. The Biden administration’s approach to Medicare negotiations will give seniors much-needed breathing room to afford their medicines and other essentials like rent, groceries, and gas, and continue to encourage the development of innovative medications that save lives and keep Americans healthy.”