CMS Proposes to Expand Eligible Medicines for IRA Price Controls—Innovation at Risk


2 minute read | June.16.2025

The Centers for Medicare & Medicaid Services on May 12 released draft guidance on implementing the Inflation Reduction Act’s so-called Drug Price Negotiation Program with major implications for the biopharma industry and patients.

The IRA allows CMS to set prices for selected medications. CMS’s new guidance widens the drugs subject to the IRA’s price controls and asks stakeholders for comments by June 26.

In this article for The National Law Journal, Orrick’s Irena Royzman and Saurabh Gupta review the proposed guidance and make the case that it should be withdrawn, given that it is untethered to the Inflation Reduction Act and science and undercuts the incentive to develop transformative combination products.