HHS Releases Initial Guidance for Medicare Prescription Drug Inflation Rebate Program
February 10, 2023
Policy Snapshot
As part of the Inflation Reduction Act, the nation’s new prescription drug law, drug companies for the first time ever will pay rebates to Medicare when their prescription drug prices increase faster than the rate of inflation for certain drugs dispensed to people with Medicare. The Department of Health and Human Services (HHS) announced next steps outlining how it will implement the new Medicare Prescription Drug Inflation Rebate Program, which will lower drug costs for millions of Americans. The Centers for Medicare & Medicaid Services (CMS) released the initial guidance detailing the requirements and procedures for the new program.