About PhRMA
The Pharmaceutical Research and Manufacturers of America (PhRMA) represents the country’s leading innovative biopharmaceutical research companies, which are laser focused on developing innovative medicines that transform lives and create a healthier world. Together, we are fighting for solutions to ensure patients can access and afford medicines that prevent, treat and cure disease. Over the last decade, PhRMA member companies have invested more than $850 billion in the search for new treatments and cures, and they support nearly five million jobs in the United States.
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WASHINGTON, D.C. (January 17, 2025) – Today, the Pharmaceutical Research and Manufacturers of America (PhRMA) President and CEO Stephen J. Ubl released the following statement in response to the Centers for Medicare & Medicaid Services (CMS) releasing the second list of medicines in Medicare to be subject to government price setting:
"The IRA price setting process is dangerous for millions of Americans who rely on innovative treatments and created unnecessary, costly bureaucracy. In rushing out this list in their final days, the Biden administration once again fails to address the true challenges facing seniors and Medicare.
"Over half the medicines selected for price setting by the Biden Administration are being targeted because of the ‘pill penalty’ included in the IRA, which lets the government set the price of medicines that often come in pill form much earlier than other types of medicines. The pill penalty sends a clear message to innovators to stop developing these medicines even though they may be the most effective, convenient, and lowest cost option for patients. In fact, recent research found that early-stage funding for small molecule drug development has fallen 70% since the IRA was enacted. Even worse, Medicare patients are facing higher costs, fewer plan options and more access barriers because the IRA failed to rein in abusive practices from PBMs and insurers, which are the real drivers of high out of pocket costs for seniors.
“We are eager to work with the new administration and Congress to fix the pill penalty and ensure Americans are not harmed by other flaws in the IRA.”