The Inflation Reduction Act (IRA) authorizes the Secretary of the Department of Health and Human Services (HHS) to negotiate prices directly with participating manufacturers for selected drugs that are high expenditure, single source drugs without generic or biosimilar competition. Negotiations with participating manufacturers for the first group of selected drugs begin in 2023, with negotiated maximum fair prices going into effect in 2026. We present information on the development of selected drugs and Medicare use and spending for these drugs from 2018 through 2022.
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