Drugmakers to Face Penalties for Price Increases Under Inflation Reduction Act

New law requires pharmaceutical companies to pay rebates to Medicare, potentially saving seniors thousands on medication.

Under the Inflation Reduction Act, nearly 50 drugs will be subject to a new penalty due to their prices increasing faster than the rate of inflation.
The law requires drugmakers to pay a rebate to Medicare, which will be used to save seniors between $1 and $2,786 per dose on their medication starting in January.
This is the first time drugmakers will have to pay the penalties for outpatient drug treatments.
Over the last four quarters, 64 drugs in total had prices that increased faster than inflation and may be subject to inflation rebates because of the Inflation Reduction Act.
The rebates are an important tool to discourage excessive price increases and protect people with Medicare.