The White House said on Thursday that the Biden administration would impose inflation penalties on hundreds of pharmaceutical companies, thereby lowering Medicare beneficiaries' out-of-pocket expenses.
A section of President Joe Biden's Inflation Reduction Act (IRA) penalises pharmaceutical companies for charging Medicare beneficiaries—a government programme for the elderly and disabled—prices that increase more quickly than inflation.
According to the White House, in the final quarter of 2023, the prices of 48 medications covered by Medicare Part B—which covers medications given at a medical facility—rose more quickly than the rate of inflation.
Because of the IRA, which Democratic Senator Joe Biden signed last year, these medications might be subject to inflation rebates in the first quarter of 2024.
Requests for additional information about the 48 medications were not immediately answered by the White House or the Centres for Medicare and Medicaid Services.
The White House released a statement stating that throughout the last four quarters, the prices of 64 medications had risen more quickly than the rate of inflation.
Since the IRA's rebate provision went into force, the cost of some medications, such Signifor, which is used to treat an endocrine problem, has increased every quarter faster than inflation.
The IRA wants to save $25 billion a year by 2031 by forcing pharmaceutical companies to bargain with the U.S. Centres for Medicare and Medicaid Service, which is in charge of managing Medicare, over the cost of a few high-priced medications.
Last week, the Biden administration made the announcement that it was establishing new guidelines that would enable it to take ownership of patents for medications created with government money if it determines that the costs are excessive.
(Source:www.reuters.com)
A section of President Joe Biden's Inflation Reduction Act (IRA) penalises pharmaceutical companies for charging Medicare beneficiaries—a government programme for the elderly and disabled—prices that increase more quickly than inflation.
According to the White House, in the final quarter of 2023, the prices of 48 medications covered by Medicare Part B—which covers medications given at a medical facility—rose more quickly than the rate of inflation.
Because of the IRA, which Democratic Senator Joe Biden signed last year, these medications might be subject to inflation rebates in the first quarter of 2024.
Requests for additional information about the 48 medications were not immediately answered by the White House or the Centres for Medicare and Medicaid Services.
The White House released a statement stating that throughout the last four quarters, the prices of 64 medications had risen more quickly than the rate of inflation.
Since the IRA's rebate provision went into force, the cost of some medications, such Signifor, which is used to treat an endocrine problem, has increased every quarter faster than inflation.
The IRA wants to save $25 billion a year by 2031 by forcing pharmaceutical companies to bargain with the U.S. Centres for Medicare and Medicaid Service, which is in charge of managing Medicare, over the cost of a few high-priced medications.
Last week, the Biden administration made the announcement that it was establishing new guidelines that would enable it to take ownership of patents for medications created with government money if it determines that the costs are excessive.
(Source:www.reuters.com)