Xavier Becerra United States Secretary of Health and Human Services | Official Website
The U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), announced that some Medicare enrollees will pay less for 64 drugs available through Medicare Part B. The reduced Part B coinsurance rate will be effective from July 1, 2024, to September 30, 2024, as each drug company raised prices faster than the rate of inflation. Over 750,000 people with Medicare use these drugs annually to treat conditions such as osteoporosis, cancer, and infections.
White House Domestic Policy Advisor Neera Tanden is set to announce the cost savings on these medications in a keynote address at the Center for American Progress. "Without the Inflation Reduction Act, seniors were completely exposed to Big Pharma’s price hikes. Not anymore," said Tanden. "Thanks to President Biden and the new Medicare inflation rebate program, seniors are protected and benefitting from lower Part B drug costs."
HHS Secretary Xavier Becerra added, “President Biden’s Medicare prescription drug rebate program is putting money back in the pockets of seniors and people with disabilities." He emphasized that lowering prescription drug costs remains a top priority for President Biden.
Because of President Biden’s lower-cost prescription drug law under the Inflation Reduction Act—which established the Medicare Prescription Drug Inflation Rebate Program—some people with Medicare who use these drugs during this period may save between $1 and $4,593 per day.
“Everyone should be able to afford their medication,” said CMS Administrator Chiquita Brooks-LaSure. “Discouraging drug companies from price increases above the rate of inflation is a key part of this effort.”
Examples include Padcev, used to treat advanced bladder cancer; beneficiaries may have saved up to $1,181 depending on their coverage and treatment course from April 1, 2023 through March 31, 2024. Another example is Crysvita for treating a rare genetic disorder; beneficiaries may have saved up to $765 within a similar timeframe.
The Inflation Reduction Act also 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 this expansion.
Additionally, starting January 1, 2024, some enrollees in Medicare Part D with high drug costs will have their annual out-of-pocket expenses capped at about $3,500. By 2025 all enrollees will benefit from a $2,000 cap on annual out-of-pocket prescription drug costs.
The Inflation Reduction Act mandates that drug companies pay rebates to Medicare when prices increase faster than inflation for certain drugs. CMS plans to begin invoicing these companies by fall 2025. The rebate amounts paid by pharmaceutical companies will be deposited into the Federal Supplementary Medical Insurance Trust Fund.
For more information on the Medicare Prescription Drug Inflation Rebate Program visit: https://www.cms.gov/inflation-reduction-act-and-medicare/inflation-rebates-medicare
To view details on reduced coinsurance rates for specific Part B drugs during July-September 2024: https://www.cms.gov/files/document/reduced-coinsurance-certain-part-b-rebatable-drugs-july-1-september-30-2024.pdf
More resources about how the Inflation Reduction Act helps lower costs can be found at LowerDrugCosts.gov.
