Under the Biden administration, a new rule has been enacted aiming to decrease the cost of prescription drugs for consumers. The rule intends to impose inflation penalties on pharmaceutical companies that increase the prices of their drugs beyond a certain level.
The rule will reshape Medicare’s Part B and Part D, which cover costly drugs administered in doctors’ offices and outpatient settings, as well as traditional drug prescriptions. Under the new rule, these 64 drugs will not see their prices increase faster than the rate of inflation.
The plan is expected to save Medicare approximately $28 billion over the next seven years. Thus, the overall aim of this move by the Biden administration is to reduce the burden of prescription drug costs on American citizens, especially the elderly who are the primary beneficiaries of Medicare.
