Buried deep within the Inflation Reduction Act’s drug-price negotiation provisions is language that could open the way to a new era of biomedical breakthroughs and smarter health spending.
This language does something Medicare hasn’t tried before: It ties payment for treatments to how well they work. Doing so used to be illegal. But it will now be required for some drugs.
For the future of health spending, this is a bigger deal than Medicare’s power to negotiate drug prices. It could also energize industry as a partner in President Biden’s Cancer Moonshot and other efforts to transform treatment of diseases. Here’s why:
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