The Department of Health and Human Services (HHS) announced some Medicare enrollees will pay less for 54 drugs covered by Medicare Part B through the end of 2024 thanks to the rebate program established by the Inflation Reduction Act (IRA).
The Medicaid Drug Rebate Program requires drugmakers to pay the program a rebate if the price of their drugs rises faster than the rate of inflation.
HHS announced savings for 64 drugs earlier this year also due to the rebate program. The lowered prices for those drugs were in effect during the third quarter of 2024, ending Monday.
According to HHS, an estimated 822,000 enrollees use these 54 drugs for conditions like cancer, osteoporosis and pneumonia. The Centers for Medicare and Medicaid (CMS) plans to begin invoicing companies for these rebates beginning in fall 2025 with the funds to be deposited into the Federal Supplementary Medical Insurance Trust Fund.
“Because of the Biden-Harris lower cost prescription drug law, the Inflation Reduction Act, which established the Medicare Prescription Drug Inflation Rebate Program, some people with Medicare who use these drugs in the last quarter of 2024 may save between $1 and $3,854 per day” HHS said in a statement.
The 54 drugs announced by HHS will have a lowered Part B coinsurance rate starting Tuesday through the end of 2024.
“The President’s lower cost prescription drug law continues to put money back in the pockets of seniors and people with disabilities,” HHS Secretary Xavier Becerra said in the announcement. “President Biden and Vice President Harris promised to lower prescription drug costs — and they have delivered.”
Last month, the Biden administration unveiled the results of the first round of Medicare negotiations, another key cost-cutting provision established through the IRA.
The six-month negotiation process ultimately yielded discounts ranging from 38 percent to 79 percent off the list price of the 10 selected drugs. Because CMS does not disclose the net price it pays for medications, it’s unclear exactly how much in out-of-pocket savings were achieved.