IRS Narrows Scope of IRA Drug Price Negotiation Excise Tax to Medicare-Only Sales

The IRS has proposed limiting the excise tax on manufacturers who refuse Medicare drug price negotiation to sales made only to Medicare beneficiaries, rather than all sales including Medicaid. This interpretation significantly reduces the potential tax exposure for drug manufacturers under the Inflation Reduction Act, which could have implications for drug pricing strategies across both Medicare and Medicaid programs. The proposed rule also excludes the tax amount itself from the calculation base, further minimizing manufacturer liability.

Pharmacy

This is outside commentary from Manatt Health, not part of Medicaid Monitor's independently scored news coverage.

More from Manatt Health