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Lower Drug Costs: Inflation Rebates for Commercial Market Drugs

This act aims to lower drug costs for families by extending inflation rebates to drugs sold in the commercial market. This means drug manufacturers will have to pay back money if their drug prices rise faster than inflation, potentially leading to lower prices for consumers. These changes are set to take effect starting in 2026.
Key points
Drug manufacturers will be required to pay inflation rebates for drugs sold in the commercial market, not just for government programs.
The base year for calculating these rebates will be shifted from 2021 to 2016, which could increase rebate amounts and potentially lower drug prices.
The changes will apply to Medicare Part B drugs starting January 1, 2026, and to Medicare Part D drugs starting October 1, 2025.
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Additional Information
Print number: 119_S_1186
Sponsor: Sen. Cortez Masto, Catherine [D-NV]
Process start date: 2025-03-27