January 17th, 2024
Health Affairs recently published an article co-authored by Rena Conti, Associate Professor of Markets, Public Policy, and Law, discussing the Inflation Reduction Act (IRA) and the effects of the coinsurance glitch.
Even though the law lowers some prescription drug out-of-pocket costs, some Medicare beneficiaries may pay more at the pharmacy if negotiated price reductions apply for targeted drugs. Using a simplified hypothetical example based on data from Eliquis, a blood thinner, the researchers illustrated the IRA coinsurance glitch.
“Whether the expected change in use of targeted drugs is clinically meaningful turns on whether this use is appropriate. Empirical evidence suggests that prescription drugs are sometimes overused or misused, even as there is concern that unaffordability depresses use,” Conti adds.
The study acknowledges uncertainties and suggests future research to assess clinical significance and explore broader impacts on drug use and health outcomes.
