US government will begin imposing penalties in 2025 on drug companies that charge its Medicare program prices that rise faster than inflation.
WASHINGTON -The U.S. government will begin imposing penalties in 2025 on drug companies that charge its Medicare program prices that rise faster than inflation, the Centers for Medicare & Medicaid Services said on Thursday.
"The Medicare Prescription Drug Inflation Rebate Program will require drug companies with excessive increases in drug prices to pay rebates to Medicare," CMS Administrator Chiquita Brooks-LaSure said in a statement. Medicare began examining the price increases in October 2022 for Medicare Part B drugs, often used in the hospital, that are complicated biologic drugs or drugs with only one manufacturer.
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