"Medicare Rebate Penalties and Social Security Plans: Biden Administration's Latest Moves"

The Biden administration has released a list of nearly 30 drugs covered by Medicare that will be subject to penalties under the Inflation Reduction Act, as their prices increased faster than the rate of inflation. Drug manufacturers will be required to pay rebates to the federal government if the price of medications covered by Medicare Part B and Part D increase at a rate that exceeds inflation. The list includes drugs such as Humira and Rybrevant, and seniors may see their out-of-pocket costs for these drugs decrease by $2 to $390 per average dose starting April 1st. The Centers for Medicare and Medicaid Services will invoice the drugmakers for these rebates beginning in 2025.