That causes inflation.
Cubanski & Neuman 22 [Juliette; Deputy director of the Program on Medicare Policy with degrees from UCLA and UC Berkely; Tricia; senior vice president of KFF and executive director of its Program on Medicare Policy with a doctorate from the Johns Hopkins School of Public Health; 2/25/2022; KFF; “Prices Increased Faster Than Inflation for Half of all Drugs Covered by Medicare in 2020”; https://www.kff.org/medicare/issue-brief/prices-increased-faster-than-inflation-for-half-of-all-drugs-covered-by-medicare-in-2020/]//kaviWaRu
Annual increases in drug price increases can translate to higher Medicare spending and higher out-of-pocket drug costs by patients. Higher out-of-pocket spending occurs when beneficiaries are required to pay coinsurance, or a percent of the drug’s price – which is common for many brand-name Part D drugs and standard for all Part B covered drugs in the form of a 20% coinsurance requirement.