How Medicare Says It Arrives At ‘Fair’ Prescription Drug Prices
When former President Biden signed the Inflation Reduction Act into law in 2022, he said that drug price negotiations and other provisions in the legislation would help lower costs for Medicare beneficiaries by bringing down the prices of certain medicines and capping out-of-pocket costs for many others. What remained hidden from view, however, is how the so-called maximum fair prices of the drugs selected for negotiation are determined. Now we have a glimpse behind the curtain. But it is only a peek.
