Leading GOP senator proposes changes to Medicare drug pricing negotiations

WASHINGTON — Senator Bill Cassidy (Louisiana), a key Republican senator with seats on the chamber's health and finance committees, has introduced a bill that would allow some small pharmaceutical companies to avoid price negotiations under Medicare.

The Inflation Reduction Act, one of President Biden's key legislative achievements, allows Medicare to negotiate prices after drugs have been on the market for nine years, while biologics are protected for 13 years. The difference is intended to account for the additional time typically needed to develop biologics, which are more complicated than small molecule drugs.

The IRA exempts some small biotech companies from Medicare negotiations, but this exemption expires after 2028 and applies only to drugs that were on the market in 2021.