I have learned to take legislative developments as a grain of salt. However, it seems like the International Price Index (IPI) model is an exception.
Christina Sandefur of Goldwater Institute, Mallory O’Connor of Mallinckrodt Pharmaceuticals, and Ross Margulies of Foley Hoag provided eye-opening insights into the political and legislative trends impacting market access at the CBI 7th Annual Reimbursement and Access conference.
There seems to be a consensus among these folks that the IPI model, which would peg drug prices to the same prices that are paid overseas, is likely to be enforced in some form (despite the precedence of Trump’s other other rules being rendered either illegal or ineffective). Seema Verma just announced this week that CMS is working ‘fast and furious’ to release the proposed rule for the IPI model as the administration is facing increasing pressure to release a concrete healthcare plan in time for the 2020 election.
The IPI model will be dangerous for market access for a couple of reasons:
- PhRMA believes that lowering US drug prices to that of an international price index would disincentivize R&D efforts and would also lead to a lag in market entry for new products.
- The Community Oncology Alliance (COA) believes that the Competitive Acquisition Program (CAP) portion of the IPI model could eliminate wholesalers altogether and make PBMs as the sole middlemen in the drug distribution channel.
Experts believe that the proposed CMS rule for IPI model will likely be released this Fall and the final rule will likely be released in Spring 2020.
The IPI model, as it currently stands, would apply to Medicare Part B single-source products and biologics.
Given the timeline of the IPI model and its serious implications, I believe that it’s critical for all market access teams to be educated on this topic and unite with providers in order to put up a fight.
I, myself, have embarked upon a research project to learn more about the implications of the IPI model for clients and determine what actions should be taken.
It’s time to make big strides and turn heads–let’s go.
