CBO: Medicare ne­go­ti­a­tions will ham­per drug de­vel­op­ment more than pre­vi­ous­ly thought

As Pres­i­dent Biden’s Build Back Bet­ter Act — and, with it, po­ten­tial­ly the De­moc­rats’ last shot at ma­jor drug pric­ing re­forms in the fore­see­able fu­ture — re­mains on life sup­port, the Con­gres­sion­al Bud­get Of­fice isn’t help­ing their case.

The CBO last week re­leased a new slide deck, out­lin­ing an up­date to its mod­el on how Medicare ne­go­ti­a­tions might take a bite out of new drugs mak­ing it to mar­ket. The new mod­el es­ti­mates a 10% long-term re­duc­tion in the num­ber of new drugs, where­as a pre­vi­ous CBO re­port from Au­gust es­ti­mat­ed that 8% few­er new drugs will en­ter the mar­ket over 30 years.

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