Forget the Posturing – The Inflation Reduction Act May Work Better Than Many Expected.

It took two years from the passage of the Inflation Reduction Act (IRA) with its provisions mandating negotiation of a “maximum fair price” (MFP) for selected Medicare Part D drugs to complete the highly scripted process of determining their prices. With yesterday’s release of the maximum fair prices for the ten drugs subject to price negotiation in the first year of the IRA, we can begin to observe the Act’s impact. Our first impression is that the Act may work better than many expected.