How Government-Mandated Pricing Can Hurt New Therapies, Drugs and Jobs

Unintended consequences of the Inflation Reduction Act mandates are causing pharmaceutical companies to retrench.

In Tennessee, we pride ourselves on the advancements we have achieved in biopharmaceutical innovation. The new therapies developed in our state have helped save thousands of lives. So, if any type of proposed legislation would result in fewer lives saved and fewer jobs for Tennesseans, it would seem like a non-starter, right?

Think again.

The Inflation Reduction Act, which was passed by Congress in 2022, created the ability for the government to mandate drug prices in the Medicare program. These price ceilings can be imposed, depending on the classification of drug, at nine or 13 years after they have entered the market following Food and Drug Administration approval.

Already, this mandate has prompted