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 27, 2026) – Following the release of the Centers for Medicare & Medicaid Services (CMS) IPAY 2028 Selected Drug List, PhRMA Executive Vice President of Policy and Research Elizabeth Carpenter issued the following statement:
“The IRA continues to show why government price setting is the wrong approach for Americans. Since the law took effect, seniors have faced higher costs, fewer choices and more barriers to care, while insurers and PBMs—who ultimately decide what patients pay—continue to operate with limited oversight.
“At the same time, the law is undermining future medical progress. As a result of the ‘pill penalty,’ investments in early-stage, small molecule medicines have fallen nearly 70%, and post-approval cancer trials for small molecules are down more than 45%. CMS is now planning to set prices for additional small molecule cancer treatments that would otherwise be spared without this penalty – driving even more investment away from these critical treatment options.
“Policymakers should fix the IRA pill penalty and rein in insurers and PBMs who decide what patients pay—because access to future cures depends on it.”