Taxpayer Watchdog Recognizes a Not-so Happy Two-Year Anniversary to the Inflation Reduction Act

August 15, 2024

WASHINGTON, D.C. – Today, the Biden-Harris administration announced the results of the Inflation Reduction Act’s (IRA) first prescription drug price “negotiations” under Medicare. This event comes as the law’s two-year anniversary places a spotlight on its already clear record of failure for patients and taxpayers.

Taxpayers Protection Alliance (TPA) Executive Director Patrick Hedger provided the following comments in response to this announcement:

“After two years of the IRA’s radical healthcare provisions, the fallout for the healthcare system is glaring. Disguised as negotiation, the IRA has clearly expanded government control by implementing price controls on prescription drugs as companies face a 95 percent excise tax under the law if they do not accept the government’s demands. This week’s announcement is only the beginning, with up to 15 more drugs slated to be named in the next round of negotiations.

“Despite the spin from the Biden-Harris administration, the IRA’s negative impacts on taxpayers are undeniable, and the aggressive push to expand these destructive drug pricing measures will only compound the damage. The administration claims the law is saving Americans money, yet Part D program premiums rose by more than 20 percent between 2023 and 2024, leaving beneficiaries with increased costs while the law’s provisions raided over $260 billion from Medicare savings.

“To make matters worse, the chilling effect caused by the law’s price controls has already scared off critical investments and forced medical researchers to scrap needed development projects. As the government targets more drugs in the coming years, it will further jeopardize American patients’ access to future cures and treatments. TPA urges all lawmakers to scrutinize the IRA’s implementation and prevent further expansion of these harmful policies.”

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Taxpayers Protection Alliance (TPA) is a non-profit, non-partisan organization dedicated to educating the public through the research, analysis and dissemination of information on the government’s effects on the economy.