Posted on 03/15/2023 6:53:43 AM PDT by Oldeconomybuyer
WASHINGTON, March 15 (Reuters) - The U.S. government said on Wednesday it would subject 27 drugs to inflation penalties, a move that will reduce out-of-pocket costs for Medicare recipients by $2 to as much as $390 per average dose.
President Joe Biden's signature Inflation Reduction Act includes a provision penalizing drugmakers for charging prices that rise faster than inflation for people with disabilities or age 65 and older on the government's Medicare health program.
"Starting on April 1, Medicare beneficiaries will pay lower coinsurance for Part B drugs that raise prices faster than inflation," White House Domestic Policy Adviser Susan Rice told reporters on a press call.
The list includes AbbVie Inc's blockbuster arthritis drug, Humira, Gilead Sciences Inc's Car-T cancer therapy, Yescarta, and Seagen Inc's targeted cancer therapy, Padcev, the White House said in a fact sheet.
Companies that raise prices higher than the inflation rate will be required to pay Medicare the difference in the form of a rebate. Those that fail to pay the rebate will face a penalty equaling 125% of the rebate amount.
The government will start invoicing the companies for the rebates in 2025 but Medicare will start reducing out-pocket-costs for members in April.
(Excerpt) Read more at finance.yahoo.com ...
Next up.
Shortages
I wonder what would happen if the drug companies responded by simply refusing to sell those particular drugs under Medicare?
soon to be not available at any price
The sheep will all think this is so great until they can’t get the drug. Joey is stickin’ it to da man. /s
Is that higher than the fake CPI "inflation rate" or the inflation rate of real world costs? There's a big difference.
So, the fines get absorbed by the other drugs sales and that saves the consumer money somehow?
That’s exactly what should happen any time the government sticks its nose where it doesn’t belong. But it doesn’t happen, in part because it’s a “no win” situation for the companies. And I am NOT a fan of the companies. But like anything, “give ‘em an inch, they’ll take a mile”.
Manufacturer back orders for drugs are rampant right now. This will only make it worse.
We really are back to the 1970s. I am tempted to say that drug companies are getting what they deserve for getting into bed with the Democrats, but ultimately this is going to hurt consumers so I have to hold my schadenfreude back.
Right on brother. Nothing needs to be said.
Good, stick it to the Man. s/
From Roman times. Yup. Nothing quite like price controls to discourage greedy businessmen from being in business. Who is John Galt, anyway.
I agree, kinda. The marketing for Humira has always been relentless. In GI, the pendulum is swinging back to Remicade and bioequivalents. In GI, if you wait long enough and if Big Pharma can turn a profit on it, leeches will be reintroduced as a therapeutic breakthrough.
Big Pharma needs to have their collective arses kicked.
Since I’m old: I once came home from wet-wade fishing wearing Chocos. When I got home and slipped them off, there was a big old leech that had affixed itself to my great right toe. I started to scream like a little girl. My wife came in with a credit card and scraped it off. I never felt a thing.
But anyway.
[[The U.S. government said on Wednesday it would subject 27 drugs to inflation penalties]]
BUT not on the ridiculously overpriced episode pens though, right liberals?
The government would force them to produce.
I’m wondering if these drugs are even available in countries like Canada with government set pharmaceutical prices or government run healthcare like the UK?
Coming from the business and manufacturing world, I always think of “lowering costs” in terms of reduced cost of inputs. My first thought is “how in the world can the busybody fedzilla reduce anybody’s costs?”
What they are really talking about is PRICES the manufacturer can charge or COSTS to the consumer.
As “Tell It Right” says in #6, they will use the bogus government inflation numbers which are half of reality.
From the Bing chat app:
Here is the list of 27 Medicare Part B drugs that will be subject to inflation penalties for the first time in the U.S.:
Aduhelm
Avastin
Beovu
Botox
Cabometyx
Darzalex
Eylea
Gazyva
Herceptin
Humira
Imbruvica
Inflectra
Inlyta
Keytruda
Lenvima
Opdivo
Padcev
Prolia
Rituxan
Skyrizi
Sprycel
Stelara
Taltz
Tecentriq
Trogarzo
Yescarta
Zolgensma
I also asked it if these penalties will lead to shortages:
Searching for: will inflation penalties lead to drug shortages
Generating answers for you…
The inflation penalties are intended to reduce out-of-pocket costs for Medicare recipients by $2 to as much as $390 per average dose. However, there is a possibility that the penalties could lead to drug shortages. Although the bill exempts drugs in shortage from the penalty, the penalty would apply as soon as the drug is no longer in shortage, at which point the manufacturer would have no choice but to produce the product at a loss or re-exit the market. It would thus discourage a manufacturer from entering the market at all and extend the drug shortage.
Yet how many times do people get fooled?
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