The Inflation Reduction Act (IRA) requires the Secretary of Health and Human Services to consider information on therapeutic alternatives to drugs selected for negotiation. The Secretary should have the requisite information to understand the market position and therapeutic role played by different drugs in the same therapeutic class. To consider the relative importance of a given drug in patient care, the Centers for Medicare and Medicaid Services (CMS) will need to identify therapeutic alternatives, determine their comparative therapeutic advantage for patients (e.g., safety and effectiveness), and incorporate that comparative information into its initial proposed price that will serve as the starting point for negotiation.
Authors
- Acknowledgements and disclosures
- Anderson's work was supported by a grant from Arnold Ventures to Johns Hopkins University. Rome has received grant funding from Arnold Ventures, the Elevance Health Public Policy Institute, and the National Academy for State Health Policy. Other than the aforementioned, the authors did not receive financial support from any firm or person for this article or from any firm or person with a financial or political interest in this article. The authors are not currently an officer, director, or board member of any organization with a financial or political interest in this article.The Brookings Institution is financed through the support of a diverse array of foundations, corporations, governments, individuals, as well as an endowment. A list of donors can be found in our annual reports published online here. The findings, interpretations, and conclusions in this report are solely those of its author(s) and are not influenced by any donation.
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