Biden implementing inflation penalties on drugs, saving money for Medicare patients

From CNBC: 2024-06-26 09:24:06

President Joe Biden announced inflation penalties on 64 prescription drugs for Medicare in the third quarter of 2024, reducing costs for older Americans. Biden’s Inflation Reduction Act requires drugmakers to pay rebates if prices rise faster than inflation. Patients may save up to $4,593 per day on certain drugs. Over 750,000 Medicare patients use these medications annually.

The list of drugs includes Bristol Myers Squibb’s Abecma, Pfizer’s Adectris, and Padcev from Astellas Pharma and Pfizer for advanced bladder cancer. Prices for Padcev have increased faster than inflation since the program started. Medicare Part B patients may see lower coinsurance rates. Neera Tanden, White House domestic policy advisor, highlighted the importance of the Inflation Reduction Act in protecting seniors from price hikes.

The Centers for Medicare & Medicaid Services will start invoicing drugmakers for rebates owed in 2025. In December, Biden released a list of 48 drugs subject to inflation penalties in the first quarter of 2024. Biden aims to lower prescription drug prices and has made it a key focus of his health-care agenda and 2024 reelection campaign.



Read more at CNBC: Biden to lower some drug costs through inflation penalties