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The Biden administration announced on Wednesday (June 26) that some Medicare beneficiaries will see reduced costs for 64 prescription drugs in the third quarter of this year. This is part of the Inflation Reduction Act (IRA), a program designed to control significant price increases.
The IRA, enacted in 2022, mandates drug companies to pay rebates to Medicare when prices for certain drugs rise faster than inflation. Health officials then adjust the cost of drugs that qualify for savings under the program.
"Without the Inflation Reduction Act, seniors were completely exposed to Big Pharma’s price hikes. Not anymore,” said White House domestic policy advisor Neera Tanden.
The drugs that will see a reduced Part B coinsurance rate from July 1 to September 30 include Bristol Myers Squibb’s Abecma, a cell therapy for multiple myeloma, and Pfizer’s targeted cancer treatment for certain lymphomas called Adectris. It also includes Astellas Pharma and Pfizer’s Padcev, a targeted cancer treatment for advanced bladder cancer.
More than 750,000 people with Medicare use these drugs annually, which treat conditions such as osteoporosis, cancer, and infections. As a result of the rebate program, people with Medicare could save more than $4,500 per day, according to the administration.