The Congressional Budget Office expects that drugmakers will raise their prices and offer larger rebates for new drugs because of provisions in the Inflation Reduction Act, leading to little change in net prices but exacerbating the gap between list prices and what drugs actually cost.
In a letter sent to House Budget Committee Chair Jodey Arrington (R-TX) and Michael Burgess (R-TX) on Dec. 21, CBO Director Phillip Swagel responded to the lawmakers’ request for more information on how the office is assessing the impact of the IRA. The CBO said it expects the list price of drugs entering the market to go up in response to the IRA’s inflation-rebate provisions and, to a lesser extent, the Medicare drug price negotiation provisions.
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