IRA

Also known as: Inflation Reduction Act

The 2022 US law that lets Medicare negotiate prices for high-spend drugs.

Definition

The Inflation Reduction Act of 2022 (IRA) authorised Medicare to negotiate prices for the highest-spend Part B and Part D drugs (10 drugs in 2026, 15 in 2027, 20 from 2028). Selected drugs must offer the Maximum Fair Price (MFP) — typically 25-60% off WAC. First 10 selected included Eliquis, Xarelto, Januvia, Jardiance, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, Fiasp/NovoLog.

See also

• WAC — The US list price of a drug — manufacturer to wholesaler, before any discounts or rebates.

Other commercial terms

• Biosimilar
• Generic drug
• QALY
• NICE TA
• ICER (cost)
• WAC