Lorem ipsum dolor sit amet, consectetur adipiscing elit. Ut elit tellus, luctus nec ullamcorper mattis, pulvinar dapibus leo.

Share Post:

Strengthen Your Customer Connections

Understanding the world prescribers are living in allows for more meaningful customer interactions. MAP Training Programs build your knowledge on marketplace trends impacting providers and the pharmaceutical industry today. 

Begin learning today

Achieve Company Goals

Bring teams up-to-speed on the latest market access trends impacting their unique selling environment.

View custom training solutions

Keep Your Finger on The Pulse

Subscribe to the Marketplace Blog to stay up-to-date on the latest trends impacting pharma

*required





    Privacy Guaranteed — We will never share your info

    Marketplace Blog

    Trends in the Marketplace

    Fractures in The 340B Program

    The 340B Program remains controversial. Hospitals and other Covered Entities (providers qualified to buy drugs at 340B prices) that benefit from the program describe it as a lifeline that keeps

    The Impact of Medicare Price Negotiations

    The Inflation Reduction Act (IRA) passed on August 16th, 2022 brings big changes for the pharmaceutical industry. On August 31st we had a live discussion on the law’s anticipated impact.

    The Impact of Medicare Price Negotiations

    The Inflation Reduction Act (IRA) passed on August 16th, 2022 brings big changes for the pharmaceutical industry. On August 31st we had a live discussion on the law’s anticipated impact. Here is a summary of our discussion:

    Inflation Penalty

    The intent of the law is to impose penalties on manufacturers who raise drug prices faster than inflation. Penalties will begin very soon; however, recent Consumer Price Index (CPI) inflation rates allow increases of around 13.5% without any penalties assessed. Manufacturers are anticipated to increase launch prices to make up for lower annual price increases.

    Price “Negotiation” Schedule and Limitations

    The number of drugs will be limited

    Health and Human Services (HHS) will select up to 60 Part D/ Part B drugs for negotiation in the next few years. Selected drugs must meet specific criteria, including time on market and the presence of competition.

    What is the “Maximum Fair Price?”

    If a drug is selected for negotiation, its price will be reduced by 25%, then 35%, then 60% over a predefined timeline. HHS will try to lower those prices more through further negotiations with the respective drug manufacturers.

    Revenue loss

    The collection of drugs subjected to this law will lose approximately $10 billion per year. A “double dipping” scenario may occur when these price reductions are combined with typical rebates to Part D Plan sponsors and 340B discounts. A 90% loss of revenue is plausible when this scenario occurs.

    Impact on Pharma

    The impact of the IRA law on pharma will be measured in the billions of dollars. This loss of revenue will be focused not only on the drugs selected for negotiation by Medicare, but also in the commercial channel, as manufacturers are constrained in raising their list prices.

    In case you missed it…

    Part of the discussion focused on how to predict if your product may be subject to “negotiation”. If your product could conceivably become subject to HHS negotiations, you will want to be very familiar with different timelines and scenarios. This webinar can help you!

    Send us an email to access a recording of this review of the Inflation Reduction Act and how it may impact pharm. 

    Share Post:

    Strengthen Your Customer Connections

    Understanding the world prescribers are living in allows for more meaningful customer interactions. MAP Training Programs build your knowledge on marketplace trends impacting providers and the pharmaceutical industry today. 

    Begin learning today

    Achieve Company Goals

    Bring teams up-to-speed on the latest market access trends impacting their unique selling environment.

    View custom training solutions

    Keep Your Finger on The Pulse

    Subscribe to the Marketplace Blog to stay up-to-date on the latest trends impacting pharma

    *required





      Privacy Guaranteed — We will never share your info

      Marketplace Blog

      Trends in the Marketplace

      The Part D Squeeze

      [DISCLAIMER: This isn’t a legal analysis. We’ve simplified provisions in the law where we could while still describing the intent of the law] The Inflation Reduction Act (IRA) will have

      “Negotiating” A Drug Deal with Medicare

      [DISCLAIMER: This isn’t a legal analysis. We’ve simplified provisions in the law where we could while still describing the intent of the law] The newly-signed Inflation Reduction Act (IRA) that

      Shopping for Healthcare Deals

      New price transparency rules set by the government are an opportunity to save money. Not for hospitals, not for payers, but for you and me. Isn’t that a nice change

      Manufacturers Restricting 340B Sales to Contract Pharmacies

      • Abbvie
      • Amgen
      • AstraZeneca
      • Boehringer Ingelheim
      • Eli Lilly
      • Merck
      • Novartis
      • Novo Nordisk
      • Sanofi
      • UCB
      • United Therapeutics
      • and more…