by William Lazonick and Öner Tulum
On August 16, 2022, Congress passed the Inflation Reduction Act, which, among other things, enables Medicare to negotiate the prices of certain high-cost prescription drugs, beginning in 2026.[1] Even though it is just one step forward in confronting US pharma’s financialized business model, this legislation was a long time coming.[2] A New York Times article published almost four decades ago reported accusations against pharmaceutical companies by then-US Rep. Henry Waxman (D-CA) of “outrageous price increases” and “greed on a massive scale.” In response to Waxman, drug-company executives asserted that “prices have climbed recently to cover accelerated investment in researching and developing new and better medications to protect Americans…”
[Click HERE to read the article featuring the INET report with the same title.][A pre-publication version of the report is also available HERE.]