Medicare Two Dollar Drug List Rescinded: How This Impacts the Inflation Reduction Act (IRA)
Medicare Two Dollar Drug List Rescinded: How This Impacts the Inflation Reduction Act (IRA)
On Inauguration Day (January 20, 2025), President Donald Trump rescinded former President Joe Biden’s executive order 14087. Biden’s executive order had been put in place to lower the cost of prescription drugs for Americans, but is separate from the Inflation Reduction Act (IRA) and the Medicare Drug Price Negotiations. This separation has yet to be addressed by the Trump Administration as of January 22, 2025.
Key components of executive order 14087 included the following:
The Medicare $2 Drug List Model
Sought to bring a $2 price cap to certain drugs.
The Cell and Gene Therapy (CGT) Access Model
Sought to negotiate pricing and facilitate coverage for costly therapy for Medicaid recipients.
The Accelerating Clinical Evidence Model
Sought to expedite availability of effective treatments by streamlining the evidence-gathering process for new drugs.
Due to the fact that IRA is not included within 14087, the Drug Price Negotiations shall continue as planned, along with other measures enacted by Congress.
For more information on the rescinded Medicare $2 Drug List Model, click here.
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