Key drug prices will be lowered due to new Biden-Harris legislation.

The U.S. Department of Health and Human Services (HHS), through the Centers for Medicare & Medicaid Services (CMS), today announced 41 drugs available through Medicare Part B will have a lowered Part B coinsurance rate from April 1 – June 30, 2024, if the drug company raises prices faster than the rate of inflation. An estimated 763,700 people with Medicare use one or more of these drugs annually.

Because of the President’s lower cost prescription drug law, the Inflation Reduction Act, which establishes the Medicare Prescription Drug Inflation Rebate Program, some people with Medicare who use these drugs during that time period may save between $1 and $3,575 per average dose depending on their individual coverage.

“Thanks to President Biden’s lower cost prescription drug law, the cost of prescription drugs is coming down for people with Medicare. We are putting money back in the pockets of older Americans and people with disabilities instead of Big Pharma,” said HHS Secretary Xavier Becerra. “President Biden made lowering prescription drug costs for Americans a top priority, and he has delivered. We will continue to use every lever we have to lower health care costs for more Americans.”

The Inflation Reduction Act requires drug companies to pay rebates to Medicare when prices increase faster than the rate of inflation for certain drugs. CMS intends to begin invoicing prescription drug companies for rebates owed to Medicare no later than fall 2025. The rebate amounts paid by drug companies will be deposited in the Federal Supplementary Medical Insurance Trust Fund, which will help ensure the long-term sustainability of the Medicare program for future generations.

“The Biden-Harris Administration remains committed to lowering drug prices for everyone – and discouraging price increases above the rate of inflation by drug companies is a key part of this effort,” said CMS Administrator Chiquita Brooks-LaSure. “All people should be able to afford their medication, and the Inflation Reduction Act continues to deliver on this promise.