Curbing Rising Drug Prices: Medicare Inflation Rebates Explained

Makers of some of the highest-cost medications could start seeing Medicare rebate invoices as a provision of the Biden administration’s landmark drug pricing law takes effect.

As of Oct. 1, the Centers for Medicare & Medicaid Services will measure price increases for prescription drugs covered by Medicare Part D. Any increases exceeding the rate of inflation over the next 12 months will be subject to payments.

The Inflation Reduction Act, which also allows the CMS to negotiate prices for certain drugs, has been touted by Democrats as one of the most extensive drug-pricing laws in US history. But pharmaceutical ...