New Guidance on Medicare Inflation Rebates Adjusts for Drug Shortages
- December 21, 2023
- Clinical Practice Updates, News
CMS published revised guidance on the Medicare Prescription Drug Inflation Rebate Program.
That program was established under the Inflation Reduction Act (IRA), which requires drug
companies to pay a rebate to Medicare if they raise their prices for certain drugs faster than the
rate of inflation. Specifically, IRA established inflation rebates for single-source drugs and
biologicals under Medicare Part B and provides for lower Part B beneficiary coinsurance on
such drugs and biologicals. The law also establishes inflation rebates for certain drugs and
biologicals under Medicare Part D.
