News Archive
Professor Terry Comments on New Law Allowing Medicare Drug Price Negotiations
07/06/2023
In a recent Indiana Business Journal article, “Drugmakers warn new law will deter discoveries,” Professor Nicolas Terry commented on a new law allowing Medicare to negotiate drug prices for the first time.
The article quoted Professor Terry’s comment on the reason the pharmaceutical industry has lobbied so heavily against the law. “The Rx industry likely knows that if this stands, it will be a model going forward,” Terry said via an email interview.
The Centers for Medicare and Medicaid Services is taking public comment through September regarding which drugs to include on the lists impacted by the law, which will allow negotiation over the price of 40 drugs in three stages.
The Congressional Budget Office estimates $102 billion in savings over 10 years for consumers and taxpayers, but Indianapolis-based Eli Lilly and Company CEO David Ricks was also quoted on the industry’s view that this law, part of the Inflation Reduction Act, has the potential to dampen innovation in the field, particularly regarding small molecule drugs.
Professor Terry is Executive Director of the Hall Center for Law and Health at IU McKinney, where he teaches healthcare and health policy courses. He is one of the permanent bloggers at the Bill of Health blog, a host of “The Week in Health Law” podcast at TWIHL.com, and @nicolasterry on Twitter.
