AMGN - AbbVie Amgen among firms targeted for latest Medicare inflation penalties

2023-12-14 12:30:25 ET

The Biden administration on Thursday named 48 Medicare Part B drugs that could be subject to inflation penalties for Q1 2024, including products from the likes of AbbVie ( NYSE: ABBV ), Amgen ( NASDAQ: AMGN ), and Pfizer ( NYSE: PFE ).

Drugs from Novartis ( NVS ) ( OTCPK:NVSEF ), Teva Pharmaceutical ( NYSE: TEVA ), Endo International ( OTC:ENDPQ ), Baxter International ( BAX ), Dr. Reddy's ( RDY ), Fresenius Medical Care ( FMS ) ( OTCPK:FMCQF ), and Kyowa Kirin ( OTCPK:KYKOF ) ( OTCPK:KYKOY ) are also included in the list.

The initiative, introduced as part of President Joe Biden's Inflation Reduction Act, aims to cut out-of-pocket expenses for Medicare members and discourage drugmakers from raising prices faster than inflation.

Accordingly, the Part B beneficiaries taking these drugs will pay lower co-insurance starting January 1, 2024, through March 31, 2024, saving $1–$2,786 per average dose, the White House said.

The penalized drugmakers will be required to pay the difference as a rebate for raising drug prices faster than inflation.

The Department of Health and Human Services (HHS) will start sending the invoices for the 2023 and 2024 inflation rebates as early as the fall of 2025.

The White House said that overall, prices of 64 drugs have risen faster than inflation over the past four quarters.

More on AbbVie, Amgen, etc.

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• Teva: 4 Key Drivers For A 2024 Revival (Upgraded Rating)
• Johnson & Johnson Vs. Pfizer: Better Pharma Stock?
• Amgen names former Novartis exec James Bradner as chief scientific officer
• Pfizer closes Seagen acquisition

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