Biden To Lower Drug Prices Through Inflation Penalties

The Biden administration announced on Wednesday that it would impose inflation penalties on 64 prescription drugs for the third quarter of this year, which will significantly reduce the costs of Medicare treatment for some old Americans. According to a provision in Biden’s Inflation Reduction Act, If any drug manufacturer increases the price of a drug more  than the inflation rate, they will have to pay a penalty to Medicare, a federal health program for Americans over the age of 60. 

The act also has another provision that states that Medicare can negotiate lower drug prices with manufacturers. According to the government, American citizens pay 2 to 3 times more than citizens of any other developed country. After this decision, some elderly Americans will have to pay for 64 prescription drugs from 1 July to 30 September, which will fall under Medicare Part B. 

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According to a release by the Biden administration, this is happening “since each drug company raised prices faster than the rate of inflation.” The release also mentioned that due to this decision, some Medicare Part B patients can save upto $4500 every day if they use these 64 drugs. Moreover, 750,000 patients use these 64 drugs, which are specifically for cancers, certain infections, and a bone disease called Osteoporosis. 

The list of drugs that will see a price cut includes Bristol Myers Squibb’s Abecma, a cell-based gene therapy, and Adectris by Pfizer, a cancer treatment for certain Lymphomas. It also includes Astellas Pharma and Pfizer’s Padcev, a treatment for advanced bladder cancer. Biden administration said that Padcev has increased its prices more than the inflation rate in every quarter. 

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