Medicare drug price cuts could have limited early impact, but grow with time

The Biden administration announced the first drug price cuts negotiated by Medicare as part of the Inflation Reduction Act. However, the response from the industry and investment community was mixed, with a concern about the law’s impact on drugmakers. The drug price cuts ranged from 38% to 79%, and if introduced in 2023, it would have saved taxpayers $6 billion. However, there are concerns the cuts could dry up private funding and cause premiums to rise.