The rising cost of prescription medications represents a common concern for Medicare beneficiaries, so much that Congress stepped in to address the problem. Under the 2022 Inflation Reduction Act, pharmaceutical companies that raise the prices of their drugs beyond the rate of inflation are penalized by a rebate that they must pay to the Medicare program. The new law was intended to motivate drugmakers to maintain reasonable prices on their products but will also help patients afford their medications when prices do climb beyond the inflation rate.
This year, 43 drugs have been identified and the appropriate penalty triggered for their makers. While the penalties won’t be due until 2025, copayments for Medicare beneficiaries will be calculated according to what the price should have been.
As the inflation rate is evaluated quarterly, so are the medications subject to the new law. Therefore, medications subject to the penalty (and regulation of the copayments) can also change quarterly.
So far, the following 43 drugs have been identified as violating the rules on price increases and will be subject to a rebate between July 1 and September 30 of this year.
Medicare beneficiaries will save between $1 and $149 per average dose of the above medications, thanks to the rebate program. Of course, your final cost depends upon your particular Medicare plan, and the type of coverage they offer for each drug.
If you’re concerned about the cost of your prescription medications, remember to consult with us, licensed agents about your Medicare plan(s). The goal is always to help you locate a plan that best covers your medical needs, while keeping costs predictable and affordable for you.