Medicare Drug Price Excise Tax Process Detailed by IRS in Notice

Drug companies who refuse to participate in Medicare’s drug price negotiations will have to pay an excise tax under forthcoming draft regulations the IRS confirmed are on their way.

The Internal Revenue Service announced Friday in Notice 2023-52 that it plans to issue a proposed rule on how drugmakers would report and pay the excise tax as part of the landmark government price negotiations included in last year’s Inflation Reduction Act.

The announcement comes just shy of a month before the Centers for Medicare & Medicaid Services is set to announce the first 10 drugs that will be up for ...