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March 10,2023
Medicare Parts B and D Drug Inflation Rebates Paid by Manufacturers Initial Guidance Released
The Inflation Reduction Act of 2022 (IRA) (signed into law on August 16, 2022) included provisions that stipulate that drug companies must pay rebates to the federal government if the price of certain prescription drug prices rise faster than the rate of inflation. This portion of the IRA has been deemed the Medicare Prescription Drug Inflation Rebate Program. On February 9, the Centers for Medicare & Medicaid Services (CMS) issued initial guidance to pharmaceutical manufacturers regarding the rebate payments by manufacturers under the Medicare Prescription Drug Inflation Rebate Program. CMS is seeking comments by March 11, 2023, and those comments can be submitted to IRARebateandNegotiation@cms.hhs.gov.
The CMS news alert can be found here.
HPMS Memo - Medicare Part B Drug Inflation Rebates Paid by Manufacturers: Initial Memorandum, Implementation of Section 1847A(i) of the Social Security Act, and Solicitation of Comments can be found here.
HPMS Memo - Medicare Part D Drug Inflation Rebates Paid by Manufacturers: Initial Memorandum, Implementation of Section 1860D-14B of Social Security Act, and Solicitation of Comments can be found here.
Medicare Prescription Drug Inflation Rebate Program Key Dates as outlined by CMS
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October 1, 2022 - Beginning of the 12-month period for which rebates must be paid for certain Part D drugs whose price rise faster than the rate of inflation.
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January 1, 2023 – Beginning of the first quarter for which rebates must be paid for certain Part B drugs whose price rise faster than the rate of inflation.
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April 1, 2023 – Original Medicare and Medicare Advantage beneficiaries may pay a lower coinsurance for certain Part B drugs whose price rise faster than the rate of inflation.
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2025 – CMS will send the first set of invoices for the rebates.
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