A new analysis from the Pioneer Institute shows that federal price controls under the Inflation Reduction Act (IRA) may be have unintended consequences on consumers’ prescription drug costs. The IRA Medicare Drug Access Tracker, which monitors the law’s impact, recently found that these controls are actually increasing out-of-pocket costs for many seniors. Among nine widely used drugs subject to the IRA’s pricing provisions, seven saw higher patient costs. On average, out-of-pocket expenses rose 32 percent, from $74.51 to $98.42, with individual increases ranging from $10.56 to $316.81.
The rise in costs is linked to how drug discounts are managed. When Medicare negotiates lower list prices, drug manufacturers often cut or eliminate the rebates they previously paid to pharmacy benefit managers (PBMs). In response, PBMs may raise copays and coinsurances, shifting greater financial responsibility to patients. Learn more here.
Last Updated on May 15, 2025 by Aimed Alliance
