What The Inflation Reduction Act Means For Drug Prices

Aug. 26, 2022 1:24 AM ETBBH, IBB, XLV, PPH, IYH, VHT, PBE, PJP, BBC, XBI, IHE, IHF, IHI, XPH, RYH, FBT, PTH, FXH, XHE, BBP, XHS, PSCH, HTEC, FHLC, ARKG, SBIO, CNCR, JHMH, LNGR, BTEC, FTXH, IEHS, IEIH, GNOM, IDNA, GERM, HELX, EDOC, BMED, WDNA, IBBQ, MDEV, AGNG, HART, PILL, IXJ, PINK, APXH1 Comment
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Neuberger Berman
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Summary

  • The recently enacted Inflation Reduction Act looks to rein in prescription drug prices and could impact the pharma industry’s long-term financial performance.
  • The legislation caps out-of-pocket costs for Medicare prescriptions at $2,000 per year, starting in 2025.
  • While these provisions likely will have long-run implications for pharma companies, the impact appears manageable over the mid term.

Syringes and vaccine vial on us dollars

Umida Kamalova/iStock via Getty Images

By Christopher M. Oshewolo

The new law will put pricing pressure on the pharma industry over the long haul, but its implications should be manageable over the medium term.

The recently enacted Inflation Reduction

This article was written by

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Neuberger Berman, founded in 1939, is a private, independent, employee-owned investment manager. The firm manages a range of strategies—including equity, fixed income, quantitative and multi-asset class, private equity and hedge funds—on behalf of institutions, advisors and individual investors globally. With offices in 23 countries, Neuberger Berman’s team is more than 2,100 professionals. For five consecutive years, the company has been named first or second in Pensions & Investments Best Places to Work in Money Management survey (among those with 1,000 employees or more). Tenured, stable and long-term in focus, the firm has built a diverse team of individuals united in their commitment to delivering compelling investment results for our clients over the long term. That commitment includes active consideration of environmental, social and governance factors. The firm manages $323 billion in client assets as of March 31, 2019. For more information, please visit our website at www.nb.com.For important disclosures: https://www.nb.com/disclosure-global-communications  Contact Us: Advisor Solutions (877) 628-2583 advisor@nb.com RIA & Family Office (888) 556-9030 riadesk@nb.com

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