Medicare Prescription Drug Inflation Rebate Program

The Inflation Reduction Act requires drug companies to pay a rebate if they raise their prices for certain drugs faster than the rate of inflation. This rebate is paid to Medicare and will be calculated and invoiced by the Centers for Medicare & Medicaid Services (CMS). The law establishes Medicare Part B prescription drug inflation rebates for single-source drugs and biologicals with prices increasing faster than the rate of inflation. In addition, the law establishes Medicare Part D prescription drug inflation rebates for certain drugs and biologicals with prices increasing faster than the rate of inflation. Collectively, the program to implement these rebates is referred to as the Medicare Prescription Drug Inflation Rebate Program.

For more information, please visit the Inflation Rebates in Medicare page.