How Drugmakers Can Dodge Medicare Price Negotiations: Explained

Drug manufacturers wishing to avoid negotiating lower prices with the federal government can voluntarily withdraw from the Medicare program—a move that would have a profound impact on market access and coverage of lifesaving therapies for millions of Americans.

The Centers for Medicare & Medicaid Services is approaching a Sept. 1 deadline to publish the list of the first 10 Part D, or prescription, drugs that will face negotiated prices under the Inflation Reduction Act. The law gave Medicare the authority to negotiate lower prices with manufacturers on the drugs it spends the most on.

The Biden administration has promoted the ...