The Inflation Reduction Act Is Hitting Medicare, Seniors, and Medical Research
America ı By Jackie Allen
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Drug Makers and Medicare Face Challenges
The IRA’s Medicare provisions include provisions for government “negotiation” of drug prices—although critics argue that this is closer to coercion. According to a Wall Street Journal editorial, manufacturers that refuse to comply face excise taxes starting at 186% and climbing to 1,900% of a drug’s daily revenue. “The law also requires manufacturers to pay the government rebates on medicines sold to Medicare if they raise prices more than the rate of inflation and puts them on the hook for more of the entitlement’s Part D costs,” the editorial stated. The estimated $160 billion in savings from these measures was directed toward unrelated green energy projects under the IRA. “But subsidized solar panels won’t help if you get sick,” the WSJ editorial warned. The inevitable result of these policies will likely be fewer new medicines and reduced innovation in the U.S. medical research sector.A Questionable Trade-Off
Despite promises to protect Medicare and advance medical research, critics argue that the Biden-Harris administration has undermined both. Seniors face rising premiums, drug makers are cutting back on innovation, and the long-term consequences for the healthcare system remain uncertain. As Fitzwater observed, “The Biden-Harris administration is not protecting Medicare; they’re stealing from it.”
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