June 26 (UPI) — The Department of Health and Human Services Wednesday said more than 750,000 Medicare recipients will pay less for 64 drugs beginning in July.
The drugs will have a lower Medicare Part B coinsurance rate through Sept. 30 under the Medicare Prescription Drug Inflation Rebate Program, a provision in the Inflation Reduction Act that requires drug companies to pay rebates to Medicare when prices go up faster than the inflation rate.
“Without the Inflation Reduction Act, seniors were completely exposed to Big Pharma’s price hikes. Not anymore. Thanks to President Biden and the new Medicare inflation rebate program, seniors are protected and benefitting from lower Part B drug costs,” White House Domestic Policy Advisor Neera Tanden said in a statement.
Among the drugs listed by the Center for Medicare and Medicaid Services were Padcev, used to treat bladder cancer and Crysvita, used for a rare genetic disorder.
HHS said some Medicare recipients who use the drugs during the period will save up to $4,593 per day.
“President Biden made lowering prescription drug costs for Americans a top priority, and he is delivering on that promise. Our work is not complete, and we will continue to fight for lower health care costs for all Americans,” HHS Secretary Xavier Becerra said.
Another cost reduction measure in the IRA that took effect Jan. 1 caps annual drug costs at roughly $3,500 for some Medicare Part D enrollees.
In 2025 the law will cap annual out-of-pocket prescription drug costs for all seniors covered by Medicare Part D at $2,000.
HHS said in addition to those savings, “the law expanded eligibility for full benefits under the Low-Income Subsidy program (LIS or “Extra Help”) under Medicare Part D at the beginning of this year. Nearly 300,000 people with low and modest incomes are now benefiting from the program’s expansion.
“CMS will start invoicing prescription drug companies for the rebates no later than fall 2025. The money will go into the Federal Supplementary Medical Insurance Trust Fund to help sustain the Medicare program.
“Discouraging drug companies from price increases above the rate of inflation is a key part of this effort, and CMS continues to implement the law to bring savings to people with Medicare,” CMS Administrator Chiquita Brooks-LaSure said in a statement.
