2023-06-09 09:26:24 ET
The Biden administration on Friday published a list of Medicare Part B drugs that will be subject to inflation penalties for Q3 2023, including some of the products from AbbVie ( NYSE: ABBV ) and Amgen ( NASDAQ: AMGN ) in the list of 43 medications.
The measure, part of President Joe Biden's Inflation Reduction Act, aims to reduce out-of-pocket expenses for Medicare recipients and discourage drugmakers from raising prices faster than inflation.
Accordingly, the Part B beneficiaries taking these drugs will pay lower co-insurance starting July 1 – September 30, 2023, saving $1 – $449 per average dose, the Centers for Medicare & Medicaid Services (CMS) said.
The penalized drugmakers will be required to pay the difference as a rebate. The agency will send the invoices for 2023- and 2024 inflation rebates starting from 2025.
In March, the Biden administration included 27 drugs for the list subject to inflation penalties for the second quarter of this year.
AbbVie's ( ABBV ) blockbuster arthritis therapy Humira and Seagen's ( NASDAQ: SGEN ) cancer therapy Padcev have been targeted for the second time. According to a fact sheet released by the CMS, Amgen's ( AMGN ) acute lymphoblastic leukemia immunotherapy Blincyto is also included in the list.
Major drug manufacturers: Pfizer ( NYSE: PFE ), Merck ( MRK ), Bristol-Myers Squibb ( BMY ), Johnson & Johnson ( JNJ ), Eli Lilly ( LLY ), Amgen ( AMGN ), Regeneron Pharmaceuticals ( REGN ).
For further details see:
AbbVie, Amgen among firms targeted for Medicare inflation penalties