HHS Announces Cost Savings for 64 Prescription Drugs
So much accomplished with 64 Prescription Drugs by the Biden Administration. So much potential for dismantling these accomplishments by the incoming Trump administration. More discounted drugs. Also, a plan to counter increasing prices increasing faster than inflation. Companies will pay back to Medicare the additional costs.
HHS Announces Cost Savings for 64 Prescription Drugs Thanks to the Medicare Prescription Drug Inflation Rebate Program Established by the Biden-Harris Admin’s Lower Cost Prescription Drug Law
– by Charles Gaba
Under the Inflation Reduction Act, some people with Medicare will pay less for some Part B drugs because the drug’s price increased faster than the rate of inflation.
The U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), today announced that some Medicare enrollees will pay less for 64 drugs available through Medicare Part B. The drugs will have a lowered Part B coinsurance rate from January 1, 2025 – March 31, 2025, since drug companies raised prices for each of these 64 drugs faster than the rate of inflation. Over 853,000 people with Medicare use these drugs annually to treat conditions such as cancer, osteoporosis, and substance use disorder. Since April 1, 2023, people with Medicare have seen savings on over 120 drugs thanks to Inflation Reduction Act’s Medicare Prescription Drug Inflation Rebate Program.
HHS Secretary Xavier Becerra . . .
“The Inflation Reduction Act is working to lower prescription drug costs for millions of people. By discouraging drug companies from raising their prices faster than inflation, we are keeping prices affordable for the people with Medicare who rely on these drugs to live healthier lives. The law has also capped out-of-pocket costs and finally allows Medicare the right to negotiate lower prices. It is a success story for the American people.”
“For too long, Americans have faced the difficult choice of paying for their prescription drugs and being able to afford other basic needs. Thanks to President Biden, that’s changing,” said White House Domestic Policy Advisor Neera Tanden.
“Under the Inflation Reduction Act, companies that increase the price of prescription drugs faster than inflation must provide a rebate to Medicare. That means lower drug costs, and more money back into the pockets of Americans with Medicare.”
Because of the Inflation Reduction Act, which established the Medicare Prescription Drug Inflation Rebate Program, some people with Medicare who use these drugs in the first quarter of 2025 may save between $1 and $10,818 per day. For example, Atgam treats a rare blood condition known as aplastic anemia. A beneficiary taking Atgam may save as much as $12,728 from January 1, 2025, through March 31, 2025, depending on their coverage and course of treatment.
CMS Administrator Chiquita Brooks-LaSure . . .
“The Inflation Reduction Act is lowering prescription drug costs so that people can access the medications they need. As we head into 2025, people with Medicare will feel substantial relief from high drug prices. In addition to lower cost-sharing for certain drugs whose prices have increased above the rate of inflation, people with Medicare prescription drug coverage will have their annual out-of-pocket costs capped at $2,000 for the first time. This will be life-changing for people who have been living with high drug costs.”
The Medicare Prescription Drug Inflation Rebate Program is just one of the Inflation Reduction Act’s prescription drug provisions aimed at lowering drug costs. Another major cost-savings benefit begins January 1, when all people with Medicare Part D will benefit from a $2,000 cap on annual out-of-pocket prescription drug costs in 2025. This provision will lead to the biggest individual savings yet – with Part D enrollees expected to save billions in out-of-pocket costs. Enabling seniors like Diana to save thousands on her prescriptions and instead spend more money on her grandchildren.
Also starting January 1, people with Medicare Part D can choose to spread out their out-of-pocket prescription drug costs throughout the calendar year, allowing for more predictable, lower monthly costs instead of paying all at once at the pharmacy.
The Inflation Reduction Act also requires drug companies to pay rebates to Medicare when prices increase faster than the rate of inflation for certain drugs. CMS intends to begin invoicing prescription drug companies for Part B inflation rebates owed to Medicare no later than September 30, 2025, and Part D inflation rebates no later than December 31, 2025. The rebate amounts paid by drug companies will be deposited in the Federal Supplementary Medical Insurance Trust Fund, which will help ensure the long-term sustainability of the Medicare program for future generations.
For more information on the Medicare Prescription Drug Inflation Rebate Program visit here.
To view the fact sheet on the 64 Part B drugs with a coinsurance reduction for the quarter January 1, 2025 – March 31, 2025 visit here.
More information and helpful resources about the Inflation Reduction Act and how it is helping to lower costs for people with Medicare can be found at LowerDrugCosts.gov and MedicamentosBajoPrecio.gov.