Small Biotech Exception from Medicare Drug Price Negotiation
New rules aim to support small biotech companies that heavily invest in research and development. This means some of their drugs will be exempt from Medicare price negotiations, potentially encouraging the creation of new therapies. Citizens might gain access to innovative drugs, though their prices could be higher.
Key points
Small biotech companies heavily investing in research can avoid Medicare drug price negotiations starting in 2029.
The exception applies to companies with five or fewer unique drugs, not controlled by foreign governments.
Companies must prove their R&D investments to qualify for this exception.
Acquisition of a small biotech by a larger, non-qualifying manufacturer may result in loss of the exception.
Introduced
Citizen Poll