WASHINGTON — Sen. Bill Cassidy (La.), a key Republican senator with seats on the chamber’s health and finance committees, introduced a bill to let some small drugmakers avoid Medicare price negotiations.
The Inflation Reduction Act, one of President Biden’s signature legislative achievements, allows Medicare to negotiate prices after pills have been on the market for nine years, while biologics are protected for 13 years. The differential is supposed to account for the extra time that it typically takes to develop biologics, which are more complicated than small-molecule medicines.
The IRA exempts some small biotechs from Medicare negotiation. However, that exemption expires after 2028, and it only applies to drugs that were on the market in 2021.
