SWOT Analysis_Reese,Kayla

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Southern New Hampshire University *

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Economics

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Apr 3, 2024

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1 SWOT ANALYSIS SWOT ANALYSIS Kayla Reese Southern New Hampshire University IHP-620-Q1492 Economic Principles-Healthcare Professor Hijazi October 22, 2023

2 SWOT ANALYSIS SWOT ANALYSIS The Inflation Reduction Act of 2022 was signed into law by President Biden last year and is meant to lower prescription drug costs and health care costs (The White House, 2022). This Act kept the premium tax credit from the Affordable Care Act and extended them through 2025 from premiums on health insurance; capped the amount that seniors would have to pay for prescription drugs at the pharmacy and capped the amount that seniors pay for insulin; provides access to free vaccinations; and will lower prescription costs for seniors on Medicare (The White Houses, 2022). But what this Act also does is reduces the access to prescriptions covered under Medicare Part B and Part D and does not encourage continued development for drugs (PhRMA). The Inflation Reduction Act has price setting policies that means doctors are often reimbursed by Medicare for the Part B medicines at the lower government-set prices that can negatively impact the commercial market as well (PhRMA). The Inflation Reduction Act discourages continued research and development after a medication is approved by the FDA (PhRMA). The Inflation Reduction Act price setting policies for medications and discouragement of continued research and development can have an impact on healthcare policy and delivery long- term. Deliverance of medication and healthcare in underserved communities may be impacted by the Inflation Reduction Act due to “pharmacy deserts in their communities, disproportionate impact of insurance design schemes, and caregiver costs and lost wages” (PhRMA). These same price setting policies make it difficult for doctors to provide needed medication to their patients because of how Part B medicines are now paid; doctors may no longer be able to afford to Part B medications when they are reimbursed at a lower cost, reducing access to medicines and healthcare.

3 SWOT ANALYSIS After prescription medication receives FDA approval, research continues with the medication for ways to improve it for patient care, different medical conditions, advances in therapy, and new dosages. For example, according to PhRMA, many oncology medications received additional approvals from the FDA more than a decade after their initial approval due to continued research and development of the medication. With the Inflation Reduction Act price setting policies, these companies are unable to invest more research into already approved medications (PhRMA). The Inflation Reduction Act has some positive and negative impacts for the healthcare industry and the consumers it is trying to protect. Though many consumers do not see the negative impacts directly and will not until years later as a long-term effect. Strengths Weaknesses  Caps the prescription drug cost that seniors pay at the pharmacy.  Caps the cost of insulin for seniors.  Provides access to free vaccines for seniors.  Lowers prescription drug costs for seniors further  Change how Medicare Part D works; nothing to protect coverage of other medications.  Make it difficult for doctors to provide needed medicines to their patients from selected Part B medicines. Opportunities Threats  Encourage more progress to fight diseases by continuing research and development  Access to medicines covered by Medicare Part B and Part D  Discouraging continued drug research

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