Horizon CEO, Joel White, spoke to Inside Health Policy about how the Inflation Reduction Act’s drug pricing negotiations will impact the pharmaceutical industry.
Horizon Government Affairs President and Founder Joel White says GOP lawmakers are likely to draw things out by requiring CMS to use its standard regulatory rulemaking process rather than the subregulatory guidance the law includes.
Some drug companies have already said the law disrupted the pipeline of some of their products. CMS and drug companies met in December to discuss how drug companies would be expected to adhere to the law, but sources say drug companies left the meeting with their questions unanswered.
White says Republicans will also look to prohibit the federal government from using Quality Adjusted Life Years, or QALYs, when considering how much a drug should cost during the negotiation process, and in general when making pricing and coverage determinations for drugs.
Additionally, Republicans might seek to increase the number of years small molecule drugs are exempt from having to face price negotiation, according to White. These drugs are currently exempt from negotiation until nine years after their approval date.