Pharmacology/BS

Biden Administration Imposes Penalties on 43 Drugs Due to Price Hikes

DoctorRWE 2023. 6. 10. 14:54
The Biden administration is set to impose inflation penalties on 43 Medicare Part B drugs in Q3 of 2023, following the imposition of fines on 27 drugs in March. The Inflation Reduction Act stipulates that pharmaceutical manufacturers must provide justifications for any price increases exceeding the inflation rate, with financial penalties imposed if deemed insufficient. The latest actions are expected to lower costs for older Americans by up to $449 per dose from July 1 and encourage reasonable pricing strategies. The CMS decision is part of a broader effort by the US government to reduce drug costs. Keywords: Biden administration, inflation penalties, Medicare Part B drugs, Inflation Reduction Act, pharmaceutical manufacturers. As a response to rising drug prices which have left Americans struggling to afford their medications, high drug costs have become a barrier to healthcare access resulting in patients rationing or forgoing necessary treatments. The IRA includes various provisions to reduce out-of-pocket expenses for prescription drugs and grants Medicare the authority to negotiate drug prices directly with manufacturers. However, Merck has filed a lawsuit against the Biden administration challenging the constitutionality of the IRA that deals with drug price negotiation claiming it violates the First and Fifth Amendments.