Health Affairs March 1, 2025
Abstract
The inflationary rebate provisions of the Inflation Reduction Act (IRA) of 2022 require pharmaceutical manufacturers to pay money back to Medicare if they raise prices faster than the rate of inflation. Opportunities now exist for Congress and the states to extend inflationary rebates to commercial plans. We demonstrate the potential savings from applying inflationary rebates to prescriptions filled in commercial plans by simulating savings under several policy design options. We estimate that a policy mimicking the IRA’s design could have saved as much as $8.1 billion in 2021 by imposing rebates on 1,100 drugs. To minimize...
Today's Sponsors
Today's Sponsor