The health care industry in America is on the precipice of its biggest change at least since the passage of Obamacare 13 years ago. Passed last summer, the Inflation Reduction Act has given Medicare the green light to negotiate the prices of some drugs for its 60 million-some recipients. The program is expected to save patients many billions of dollars while significantly shrinking revenue for some pharmaceutical firms. Indianapolis-based Eli Lilly and Co. is intensely concerned about this development. Two of its most popular medicines are expected to be among the first 40 drugs subject to negotiations.

Lilly CEO David Ricks has gone on the record in public forums criticizing the new law for what he anticipates will be a chilling effect on the development of certain types of drugs. Meanwhile, other big players in the pharmaceutical industry are trying to squash the negotiations altogether. Two have sued the Biden administration, asking a federal judge to declare the program unconstitutional.

IBJ reporter John Russell has been studying the program for a story that’s on the front page of the latest issue of IBJ. In this week’s edition of the IBJ Podcast, Russell discusses the program’s potential effects on patients, drug makers and the rest the health care industry, as well as the objections from Eli Lilly and Co.

The IBJ Podcast is brought to you by Taft.