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Government,
Health Care & Hospital Law

Aug. 20, 2024

Legal and political battles threaten Medicare drug price negotiation program

The Inflation Reduction Act (IRA) of 2022 established a voluntary Drug Price Negotiation Program to reduce the cost of certain drugs for Medicare beneficiaries and taxpayers. Drug manufacturers and their allies have brought a wave of lawsuits challenging the law.

John H. Minan

Emeritus Professor of Law, University of San Diego School of Law

Professor Minan is a former attorney with the Department of Justice in Washington, D.C. and the former chairman of the San Diego Regional Water Quality Board.

Shutterstock

In August 2022, President Joseph Biden signed the Inflation Reduction Act (IRA), which among other things created the voluntary Drug Price Negotiation Program. It is designed to rein in the high cost of certain single source, high-priced drugs for Medicare beneficiaries and the taxpayers by using the federal government's purchasing power with drug manufacturers.

The program is expected to save billions of dollars for the government and beneficiaries. Pr...

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