CBO Projects More Harm To Innovation From Drug Price Negotiation

By John Wilkerson / January 14, 2022 at 4:24 PM
The Congressional Budget Office updated its model for estimating how bills that lower drug industry revenue would impact drug innovation, and the new model projects a slightly bigger impact on drug innovation long term than CBO’s previous model. The updated model estimates a 10% reduction in drug inventions after the first 10 years, compared to 8% in the prior model . The new model does not project the impact of Democrats’ Medicare drug price negotiation legislation, which is a significantly...

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