The Biden Administration announced Thursday that the Inflation Reduction Act is continuing to lower out-of-pocket prescription drug costs for Medicare beneficiaries. As of July 1, 2023, coinsurances for 43 drugs will be lower for beneficiaries who take these medications. The savings will range from $1 to $372 per average dose, depending on the individual coverage.
The Inflation Reduction Act was signed into law by President Biden in August 2022. The law requires drug manufacturers to pay rebates to Medicare if their prices increase faster than inflation. The rebates are used to lower out-of-pocket costs for beneficiaries and to reduce Medicare program spending.
The Biden Administration has estimated that the Inflation Reduction Act will save Medicare beneficiaries an average of $250 per year.
“The Inflation Reduction Act is helping to make prescription drugs more affordable for millions of Medicare beneficiaries,” Health and Human Services Secretary Xavier Becerra said in a press release. “These lower coinsurances will help beneficiaries save money on the drugs they need to stay healthy.”
The 43 drugs with lower coinsurances include a variety of medications for cancer, heart disease, diabetes, and other chronic conditions. The list of drugs is available on the Centers for Medicare and Medicaid Services website.
The Inflation Reduction Act is one of a number of steps the Biden Administration has taken to lower the cost of prescription drugs. In March, the administration announced a plan to allow Medicare to negotiate drug prices for the first time. The administration is also working to increase competition in the prescription drug market and to make it easier for generic drugs to enter the market.
“We are committed to making prescription drugs more affordable for all Americans,” said Becerra. “The Inflation Reduction Act is a step in the right direction, and we will continue to work to lower the cost of prescription drugs.”
CMS has released information about these 43 Part B drugs and biological products in the quarterly Average Sales Price (ASP) public files, available here. A fact sheet is available here.