Although the Inflation Reduction Act includes a provision that makes drugmakers provide rebates to US Centers for Medicare and Medicaid Services (CMS) if they hike prices at a rate exceeding inflation, no such penalties have yet been divvied out. This week, Sen. Ron Wyden (D-OR), Senate Finance Chair, penned a letter asking the head of CMS when the rebates would kick in, emphasizing the need for quick action as many drug prices jumped significantly higher than the current rate of inflation in the past month.
According to Zachary Brennan, “The annual inflation rate for the United States is currently about 6.5% for the 12 months ended December 2022, but a new rate is coming from the Labor Department on Valentine’s Day. Drugs that could face these rebates include Novartis’ cancer drug Afinitor, which saw a 9.9% price increase on Jan. 4; Pfizer’s Bicillin shot to treat bacterial infections, which saw its price rise 10% on Jan. 1; or Acorda Therapeutics’ multiple sclerosis drug Ampyra, which saw its price rise 10% on Jan. 1, according to the data firm 46brooklyn.”
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(Source: Endpoints News, February 3rd, 2023)
