Model N Introduces New Rebate Enhancement, as Pharma Companies Prepare for Impact from the Inflation Reduction Act
SAN MATEO, Calif., May 07, 2024 (GLOBE NEWSWIRE) -- Model N (NYSE:MODN), the leader in revenue optimization and compliance has introduced a critical product enhancement that supports evolving compliance needs around the Inflation Reduction Act (IRA). The company has introduced a new Medicare Part D inflation rebate-per-unit, ensuring pharma manufacturers remain compliant with impending IRA regulation and avoid significant revenue loss.
"The Inflation Reduction Act introduces sweeping changes for drug pricing and Medicare programs, and our goal is to empower customers to stay ahead of these shifts," said Suresh Kannan, Chief Product Officer at Model N. "As our life sciences customers prepare for new reforms and regulatory changes, Model N's latest product innovations address a critical market need by providing the capabilities necessary to calculate and process complex Medicare Part D inflation rebates."
According to Model N's 2024 State of Revenue Report, pharmaceutical executives are preparing for a significant revenue impact from the IRA. The law aims to lower prescription drug costs for Medicare beneficiaries through provisions allowing the program to negotiate prices for certain high-cost drugs and requiring manufacturers to pay rebates for any price changes higher than the inflation rate. Effective for Medicare Part B and D drugs, manufacturers must calculate inflation penalties based on pricing increases over the designated benchmark periods.
Model N's new inflation rebate feature empowers customers to calculate Medicare Part D inflation rebate-per-unit, ensuring compliance with the upcoming IRA regulation set to take effect in 2025. Coupled with Model N's Government Pricing, Payer Management, Provider Management, and Validata solutions, customers gain a unified, end-to-end process to manage pricing strategy, calculate fees, and issue rebate payments in compliance with IRA guidance.
The company is committed to ensuring that pharma customers are equipped with the most up-to-date technology to comply with IRA guidance, which will continue to evolve into 2026. With continual enhancements to its suite of life sciences cloud solutions, Model N ensures pharma customers can nimbly adapt to evolving regulations while optimizing revenue.
For more information on Model N's latest product innovations, visit https://www.modeln.com.
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About Model N
Model N is the leader in revenue optimization and compliance for pharmaceutical, medtech and high-tech innovators. Our intelligent platform powers your digital transformation with integrated technology, data, analytics, and expert services that deliver deep insight and control.
Our integrated cloud solution is proven to automate pricing, incentive and contract decisions to scale business profitably and grow revenue. Model N is trusted across more than 120 countries by the world's leading pharmaceutical, medical technology, semiconductor, and high-tech companies, including Johnson & Johnson, AstraZeneca, Stryker, Seagate Technology, Broadcom, and Microchip Technology. For more information, visit www.modeln.com.
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