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Feds tamp down on prescription drug price increases above inflation

March 17, 2023

On March 15, federal health officials released the first list of drugs that will face a penalty under a new federal law aimed at curbing high drug costs.

Under the Inflation Reduction Act passed last year, drug companies that raise the prices of prescription medicines by more than inflation must pay rebates, one of several provisions in the law aimed at curbing high drug costs. 

The Medicare Prescription Drug Inflation Rebate Program reduces coinsurance for some people with Part B coverage to discourage drug companies from increasing prices faster than inflation.

The Centers for Medicare and Medicare Services (CMS) named 27 prescription drugs for which Part B beneficiary coinsurances may be lower from April 1 – June 30, 2023. Lower coinsurance for these drugs will go into effect on April 1, 2023. (The Part B drugs impacted by this coinsurance adjustment may change quarterly.)

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