Gathering early perceptions of payer response to the Inflation Reduction Act of 2022
The Future of Drug Pricing Under the IRA:
Key Payer Insights
Magnolia Market Access dives into the evolving landscape shaped by the Inflation Reduction Act (IRA), revealing critical insights from national and regional payers, PBMs, and industry actuaries. This survey explores payers’ early responses to Medicare’s groundbreaking provisions:
- Medicare Part D Redesign: Payers expect aggressive cost-control strategies—90% plan to increase management of specialty products, while formularies tighten and utilization management rises.
- Drug Price Negotiation: Nearly two-thirds believe Medicare Part B prices will drop, yet half think Part D rates will remain competitive with existing contracts.
- Inflation Penalties: 83% predict higher drug launch prices and reduced rebate flexibility as manufacturers adapt.
- Biosimilars and Generics: Biosimilar competition may thrive, with 86% favoring cost-effective biosimilars for placement, while generics face limited disruption.
Payers anticipate dramatic changes in plan design, pricing, and access, while manufacturers weigh launch strategies, rebates, and investment decisions.
Download the full report to explore actionable insights and prepare for the future of drug access and affordability under the IRA.
