Medicare Patients to Save on 64 Prescription Drugs with Prices Above Inflation Rate

1. 64 Drugs Affected: The Biden administration has identified 64 prescription drugs whose prices rose faster than inflation, leading to lower co-insurance payments for Medicare patients.
2. Medicare Rebate Program: The Inflation Reduction Act established a program requiring drug companies to pay rebates to Medicare when prices increase above the inflation rate.
3. Cost Savings: Medicare patients using these drugs can expect to save between $1 and $4,593 per day from July 1 to September 30, 2024.
4. Drugs Included: Examples of affected drugs include Padcev for bladder cancer and Abecma for myeloma therapy.
5. Implementation: The Centers for Medicare and Medicaid Services (CMS) will invoice drug companies for rebates by fall 2025.
6. Broader Impact: The Inflation Reduction Act aims to save $25 billion annually by 2031 and includes provisions for negotiating prices of expensive drugs with the U.S. Centers for Medicare and Medicaid Service.