U.S. Sen. Ron Wyden (D-OR), chairman of the Senate Finance Committee, is highlighting the beginning of several prescription drug provisions included in the Inflation Reduction Act.
Wyden particularly noted policy that includes drug company Medicare rebates if a product’s price increases faster than the inflation rate.
“There is finally accountability for Big Pharma’s indiscriminate price gouging,” Wyden said. “Seniors and taxpayers shouldn’t be forced to foot the bill while Big Pharma raises prices faster than the cost of living every year. This step is just the beginning of a seismic shift in the relationship between Big Pharma and taxpayers.”
Wyden noted that October 2022 triggers the one-year period in which the Centers for Medicare & Medicaid Services (CMS) determines the annual manufacturer price for every unit of a drug sold in Medicare Part D.
After the one-year mark, the annual price will be compared to a benchmark price from a prior year. If the annual manufacturer price is higher than the benchmark price, a manufacturer will owe a rebate of the difference back to Medicare.
Additionally, a similar rebate will be implemented for Medicare Part B at the beginning of 2023. The Inflation Reduction Act also includes an increased payment for doctors prescribing biosimilars, which are generally less expensive than their biologic counterparts.