June 27, 2024
According to the Department of Health and Human Services, some Medicare beneficiaries may see lower coinsurance costs on 64 Part B drugs from July 1, 2024 – September 30, 2024. The reduction results from drug companies raising prices faster than the rate of inflation.
One of the Inflation Reduction Act’s goals is to keep Medicare costs low, which includes protecting seniors from price hikes. Part of this Act is Biden’s Medicare prescriptions drug rebate program. The program requires drug companies to pay rebates on many Part B covered prescriptions if their prices increase faster than the rate of inflation.
Over 750,000 Medicare enrollees use the 64 drugs annually.
“People with Medicare will see lower out of pocket costs for certain drugs if drug companies raise their prices higher than the rate of inflation…Some people could save as much as $4,500 per day,” says U.S. Department of Health and Human Services’ Chief Competition Officer, Stacy Sanders.
View the list of 64 drugs here: https://www.cms.gov/files/document/reduced-coinsurance-certain-part-b-rebatable-drugs-july-1-september-30-2024.pdf
Learn more about the Inflation Reduction Act of 2022 here: https://www.hhs.gov/inflation-reduction-act/index.html
Where do the rebates go?
The rebates will go into the Medicare Trust Fund. Medicare is paid for by trust fund accounts owned by the United States Treasury and the funds within the account can only be used for Medicare.
Can I submit a rebate?
This is not a consumer rebate program. Instead, the government will invoice drug manufacturers for a rebate if drug prices increase faster than the rate of inflation. The rebate money will go back to Medicare.
Who will save money?
Some people with Medicare Part B or D may pay less out-of-pocket coinsurance costs for certain drugs. If a drug’s price has increased faster than inflation, the coinsurance will be 20% of the adjusted price.
