Washington DC — Last week, the first health care provision in the Inflation Reduction Act took effect, an important step to deliver lower costs to millions of Americans. As of October 1, 2022, drug companies will now be charged a penalty when they raise drug prices faster than the rate of inflation. In recent years, Americans have been paying three times more than people in other countries for the same prescription drugs. Just last week, the Department of Health and Human Services found that drug companies hiked prices more than the rate of inflation on more than 1,200 medications. In response, Protect Our Care Chair Leslie Dach issued the following statement:
“For the first time in a long time, patients come ahead of drug companies. Starting this month, drug companies face stiff penalties if they jack up the price of prescription drugs in order to pad their profits, boost their stock buybacks, or give bonuses to their CEOs. For years, patients have faced prescription drug prices that rise so fast they can’t keep pace, and too many have to choose between buying food for their family or prescription drugs that keep them alive. Under President Biden and Democrats’ landmark Inflation Reduction Act, prescription drug prices will come down and patients will be able to breathe a little easier.”
“Drugmakers raised the list prices of more than 1,200 treatments above the 8.5 percent rate of inflation from July 2021 to July 2022, according to a new report from the Department of Health and Human Services.”
From Endpoints News:
“Beginning tomorrow, biopharma companies can be charged rebates for any new drug price increases rising faster than the rate of inflation.
The new rebates are part of the newly signed Inflation Reduction Act, which introduces this new requirement that manufacturers pay rebates to Medicare for Part D drugs whose price increases exceed inflation, and in January 2023, the same will occur with Part B drugs.”