For decades, Americans have endured the skyrocketing costs of prescription drugs. In August, Congress finally took action to address this problem by passing the Inflation Reduction Act. This historic law takes important steps to assist American families by making some lifesaving prescription drugs more affordable, but the act has significant limitations that prevent it from being a complete solution to out-of-control drug pricing in the United States.
States have the opportunity to enact Prescription Drug Affordability Boards that leverage the Inflation Reduction Act in three ways:
- Use the Medicare negotiated rate as an upper payment limit for people purchasing medication through private insurance.
- Leverage the Inflation Reduction Act’s inflationary rebate to establish a similar rebate within the state.
- Establish cost-sharing caps for patients enrolled in health insurance plans besides Medicare.