How ACA Could Transform the U.S. Pharmaceutical Marketplace
The day after the passage of the Affordable Care Act (ACA) felt like a victory lap for pharma. In previous health reform initiatives pharma industry executives had been largely excluded from shaping legislation. This time they were deeply involved. In exchange for industry user fees, extended Medicaid rebates, and a closing of the doughnut hole, pharma received access to a larger market: ACA decreases the ranks of the uninsured, increases government subsidies, improves access to healthcare, and offers favorable treatment of exclusivity for biologics.
But as we consider ACA’s long-term effect on healthcare, it appears that the feeling of victory was premature. Factor in the full range of reform-related changes, and the impact on the typical pharma company looks significantly higher—as much as 20 percent of U.S. revenue.
The system will not and cannot change overnight; it will take several years just for ACA’s full impact to be realized. But pharma cannot ignore the dynamic changes that will transform the U.S. healthcare market.