Medicare Imposes Savings on 64 Drugs Exceeding Inflation Rate

The US government is going after drugmakers such as Bristol Myers Squibb Co., Johnson & Johnson, and Merck & Co.to pay rebates to Medicare if they raise the price of some of their drugs faster than inflation beginning in January.

Some Medicare enrollees will pay a lower coinsurance rate for 64 drugs treating cancer, osteoporosis, and substance use disorder between Jan. 1 and March 31, 2025, the US Department of Health and Human Services said Friday.

The announcement is the latest effort in the government’s Medicare Prescription Drug Inflation Rebate Program, which requires drug companies to pay ...