The Inflation Reduction Act of 2022 makes the most dramatic changes to American healthcare since the Affordable Care Act 13 years ago. Of particular note, it empowers Medicare to begin setting ceilings on prescription drug prices. But the success of the IRA will be measured not just by how much it can lower prices, but also by whether it continues to encourage drug makers to invest in new treatments. There are ways to thread that needle if Medicare engages in some innovative approaches to wielding its newfound authority. Chiquita Brooks-LaSure, head of the Centers for Medicare and Medicaid Services (CMS), has signaled her desire to engage in a “collaborative process” with manufa
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