Company: FTII
Filing Date: 2025-02-14
Form Type: S-4
Source: 0001493152-25-006997
Chunk: 154

Company: FutureTech II Acquisition Corp.
Filing Date: 2025-02-14
Form: S-4
Chunk 154
---
 half of
the year, and 3% in the second half of the year. The American Taxpayer Relief Act of 2012 made other changes, including the reduction
of Medicare payments to several types of providers and an increase in the statute of limitations period for the government to recover
overpayments to providers from three to five years. In August 2022, President Biden signed into law the IRA, which implements substantial
changes to the Medicare program, including drug pricing reforms and changes to the Medicare Part D benefit design. Among other reforms,
the Inflation Reduction Act of 2022 imposes inflation rebates on drug and biological product manufacturers for products reimbursed under
Medicare Parts B and D if the prices of those products increase faster than inflation beginning in 2023; implements changes to the Medicare
Part D benefit that, beginning in 2025, will cap benefit annual out-of-pocket spending at $2,000, with new discount obligations for pharmaceutical
manufacturers; and, beginning in 2026, establishes a “maximum fair price” for a fixed number of pharmaceutical and biological
products covered under Medicare Parts B and D following a price negotiation process with the Centers for Medicare and Medicaid Services.

On October 14,
2022, President Biden issued an Executive Order on Lowering Prescription Drug Costs for Americans, which instructed the Secretary of the
Department of Health and Human Services to consider whether to select for testing by the CMS Innovation Center new health care payment
and delivery models that would lower drug costs and promote access to innovative drug therapies for beneficiaries enrolled in the Medicare
and Medicaid programs. On February 14, 2023, the Department of Health and Human Services issued a report in response to the October 14,
2022, Executive Order, which, among other things, selects three potential drug affordability and accessibility models to be tested by
the CMS Innovation Center. Specifically, the report addresses: (1) a model that would allow Part D Sponsors to establish a “high-value
drug list” setting the maximum co-payment amount for certain common generic drugs at $2; (2) a Medicaid-focused model that would
establish a partnership between CMS, manufacturers, and state Medicaid agencies that would result in multi-state outcomes-based agreements
for certain cell and gene therapy drugs; and (3) a model that would adjust Medicare Part B payment amounts for Accelerated Approval Program
drugs to advance the developments of novel treatments. It remains to be seen how these drug pricing initiatives will affect the broader
pharmaceutical