“We will also prevent the price of brand-name and outlier generic drugs from rising faster than the inflation rate.”
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The Inflation Reduction Act, signed August 16, 2022, requires drug manufacturers to pay rebates to Medicare when prices of certain Part B and Part D drugs rise faster than inflation, and CMS implemented the program and assessed rebates covering calendar years 2023-2024. The mechanism applies only to drugs sold to Medicare, not to all purchasers, and it recoups above-inflation increases after the fact rather than preventing them; prices outside Medicare can still rise faster than inflation. A real but incomplete delivery of the pledge as stated.
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