The Biden administration announced on Wednesday that it will impose inflation penalties for 64 prescribed drugs for the third quarter of this 12 months, which can reduce costs for certain older Americans enrolled in Medicare.
President Joe Biden has made lowering U.S. drug prices a central pillar of his health agenda and his 2024 re-election program. determination Biden's Inflation Reduction Act requires pharmaceutical firms to pay rebates to Medicare, the federal government health care program for Americans over 65, in the event that they raise the worth of a drug faster than the speed of inflation.
It is independent of one other provision of the law that permits Medicare to barter lower prices for prescribed drugs with manufacturers. On average pay two to thrice more than patients in other industrialized countries for prescribed drugs, based on the Biden administration.
Some patients pay a lower deductible for the 64 Medicines The costs for the services mentioned in Wednesday's announcement, that are covered by Medicare Part B, aren’t covered for the period July 1 through Sept. 30 “because each pharmaceutical company has increased its prices faster than the rate of inflation,” a government news release said.
Some Medicare Part B patients could save as much as $4,593 per day by taking these drugs in the course of the quarter, the press release added.
More than 750,000 Medicare patients take these drugs every year, the statement said. The drugs treat diseases reminiscent of cancer, certain infections and a bone disease called osteoporosis.
The list accommodates Bristol Myers Squibb Abecma, a cell therapy for multiple myeloma; and Pfizer's Adectris, a targeted cancer drug for certain lymphomas. They also include Padcev from Astellas Pharma and Pfizer, a targeted cancer drug for advanced bladder cancer.
The Biden administration said the worth of Padcev has risen faster than inflation every quarter because the Medicare inflation rebate program took effect last 12 months.
“Without the Inflation Reduction Act, seniors were completely at the mercy of drug companies' price increases. Not anymore,” said Neera Tanden, White House domestic policy adviser, within the press release.
The Centers for Medicare & Medicaid Services plans to send drug manufacturers their first bills for rebates under this system in 2025.
In December published a listing of 48 prescribed drugs that may be subject to inflation surcharges in the primary quarter of 2024.
image credit : www.cnbc.com