Today, ASHP, the National Community Pharmacists Association, the American Society of Consultant Pharmacists, the American Pharmacists Association, and the National Alliance of State Pharmacy Associations met with Centers for Medicare & Medicaid Services (CMS) Acting Administrator Stephanie Carlton to discuss shared concerns over implementation of the Inflation Reduction Act (IRA).
The current framework for negotiated drug pricing will force pharmacies, hospitals, and health systems to operate at a loss, ASHP and the other groups told CMS officials. The meeting followed joint letters from national pharmacy organizations and health systems to CMS outlining issues with the proposed framework.
During the meeting, ASHP CEO Paul W. Abramowitz highlighted ASHP’s key concerns, noting that the IRA negotiated drug pricing framework should be based on upfront discounts to avoid the higher costs and administrative burden created by the proposed framework. Abramowitz also said that the proposed framework would force hospitals and health systems to purchase IRA negotiated price drugs at inflated prices while waiting for refunds that could be significantly delayed or denied at manufacturers’ discretion.
“ASHP strongly supports efforts to reduce the price of prescription drugs,” Abramowitz said. “We urge CMS to redesign the proposed IRA drug pricing framework to ensure that pharmacies, hospitals, and health systems are not faced with significant costs to implement a system that does not deliver on the IRA’s goal of reducing costs for patients and our healthcare system.”
ASHP will continue to advocate aggressively for a streamlined, workable IRA negotiated drug pricing framework. Currently, IRA negotiated drug pricing for the first 10 Part D selected drugs is scheduled to take effect on Jan. 1, 2026. Please send questions or concerns regarding the IRA to Jillanne Schulte Wall, senior director, health and regulatory policy.
