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Journal Article

Measuring the Budget Impact of Nondiscriminatory Cost-Effectiveness

Press Contact: Jason Millman (213)-821-0099

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Abstract

Importance  The US Inflation Reduction Act (IRA) prohibits the Centers for Medicare & Medicaid Services (CMS) from using discriminatory methods such as cost-effectiveness analysis (CEA) that assign lower value to treating sicker and disabled persons. Generalized risk–adjusted cost- effectiveness (GRACE) provides a nondiscriminatory alternative, but the potential impact on health care budgets is unknown.

Objective  To compare value-based drug prices based on traditional CEA with those based on IRA-compliant GRACE and assess the implications for health care budgets.

The full article can be viewed at JAMA Health Forum

Mulligan K, Baid D, Manetas M, Lakdawalla DN. Measuring the Budget Impact of Nondiscriminatory Cost-Effectiveness. JAMA Health Forum. 2025;6(9):e253076.