Medicare Drug Price Hike Rebates Start in 2025
February 10, 2023
The Centers for Medicare and Medicaid Services (CMS) released a draft guidance that finally sets a timeframe for drugmaker rebates for medications that increase in price faster than inflation. The program, part of the Inflation Reduction Act, will kick into action by 2025. The agency is seeking public comments on the draft guidance submitted by March 11th.
According to Christopher Newman, “The agency said in a timeline it will tell drugmakers what rebates they owe for prices that exceeded the inflation rate in 2023 or 2024 by Sept. 30, 2025 for Plan B drugs and by Dec. 31, 2025 for Plan D drugs. Drug manufacturers will receive a preliminary rebate report that will allow them to flag errors in calculations, which will be based on Medicare average sales prices over a 12-month period for Plan D drugs and over each quarter for Plan B drugs.”
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(Source: BioPharma Dive, February 10th, 2023)