The Biden administration is once again trumpeting the Medicare Prescription Drug Inflation Rebate Program to prove to voters it is lowering drug prices.
Through the program, 54 drugs will be less expensive for Medicare enrollees because of a lower Part B coinsurance rate from Oct. 1 through the end of the year. This is because drug companies raised the price of these 54 drugs faster than the rate of inflation, affecting 822,000 beneficiaries.
“The President’s lower cost prescription drug law continues to put money back in the pockets of seniors and people with disabilities,” said Department of Health and Human Services (HHS) Secretary Xavier Becerra in a statement. “President Biden and Vice President Harris promised to lower prescription drug costs—and they have delivered.”
The program has been in effect since April 2023. Each quarter, a new selection of drugs is discounted through the Inflation Reduction Act. This time, the program could could save patients $3,000 on the drug Kymriah, which treats cancer, the administration said.
Other drugs included in this round are Briumvi for multiple sclerosis, Krystexxa for chronic gout and Tivdak used to treat cervical cancer.
It is expected enrollees could save as much $3,854 depending on the prescription drug they need.
HHS discounted drugs for bladder cancer, osteoporosis, infections and more this year. Starting next year, Medicare Part D enrollees will have a $2,000 cap on annual out-of-pocket prescription drug costs.
In August, the feds announced savings on 10 prescription drugs through the drug negotiation program, which drastically reduces the price of drugs like Enbrel, Jardiance and Januvia, starting in 2026. A new list for negotiation in 2027 will be announced in February.
The Centers for Medicare & Medicaid Services will start invoicing prescription drug companies for rebates owed to Medicare by fall 2025. These rebates are deposited to the Federal Supplementary Medical Insurance Trust Fund.