Drugmakers will be required to pay rebates to the federal government for price increases in Medicare that exceed the rate of inflation beginning in 2025, the CMS said Thursday.
The timeline is part of initial guidance the agency released for inflation-linked price hike limits, one of a set of reforms in last year’s Inflation Reduction Act that are aimed at reducing Medicare drug costs. The law also allows Medicare to negotiate prices for top-selling, single-source drugs and capped monthly insulin costs for the program’s participants.
