Healthcare equities rallied Wednesday mid-day with the announcement that a little-discussed component of the Affordable Care Act had not been triggered, which could have theoretically resulted in attempts to control drug costs via the Centers for Medicare and Medicaid Services (CMS) .
The Independent Payment Advisory Board (IPAB) is an executive committee, created with ACA, and intended to contain Medicare spending growth by proposing reforms to CMS. The IPAB could have come into existence, essentially “triggered”, when the actual growth rate exceeds projections.
Never heard of it? Most hadn’t. It’s the latest strawman issue to be raised by biotech investors; everyone needs something to fret over. The IPAB NOT being triggered late Thursday morning is the latest reason (excuse) for a brief relief rally. And brief it was.
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