Community Oncology: Awareness v Action in the Face of the IRA

The Inflation Reduction Act (IRA): Are Community Oncology Practices Prepared?

The IRA brings sweeping changes, including new drug negotiation policies and Part D plan redesign. These reforms will have far-reaching effects on community oncology practices. One key impact? Lower drug prices resulting from Centers for Medicare & Medicaid Services (CMS) negotiations could reduce drug revenues—a crucial source of financial stability for many community oncology practices relying on buy-and-bill revenue. Our 2024 Community Oncology Report highlights the level of IRA awareness among community oncology practices as well as initial actions to address potential impacts.  

IRA awareness is high in community oncology practices, but action lags:

• Eighty-five percent of community oncology practices are aware of potential financial impacts of the IRA; however, only 62% are actively taking steps to prepare.  
• Surprisingly, 36% of practices remain in a "watch and wait" phase.

Why the Delay in Action?  

The complexity and uncertainty surrounding the IRA's implementation are causing many community oncology practices to pause. They understand that action is necessary, but struggle with quantifying the precise impacts and developing flexible strategies to adapt.  

Initial community practice responses remain limited to discussions among leadership including:

• Practices dispensing oral medications closely monitoring pharmacy benefit managers’ (PBMs') evolving reimbursement strategies.  
• Growing attention to Part D plan changes, particularly regarding patient out-of-pocket costs.

What's Next?  

As IRA's implementation continues, it's crucial for community oncology practices to move from awareness to action.  

Stay tuned for our upcoming 2024 Landscape Report Part 2, set to release in October, for an even deeper dive into the expected impact of the IRA on providers and the implications for manufacturers.  

In the meantime, I'm here to answer your questions and would love to hear from you! Send me a note at ebijesse@hmplgobal.com.