IRA Provision: The Medicare Prescription Drug Inflation Rebate Program
The Centers for Medicare & Medicaid Services (CMS) issued a fact sheet and a list of 27 Part B "rebatable drugs":
- The inflation-adjusted coinsurance percentage limitation—calculated in accordance with the Inflation Reduction Act—will apply to the 27 rebatable drugs from April 1 through June 30, 2023.
- CMS will post an updated list of rebatable drugs and corresponding coinsurance adjustments each quarter as part of the Medicare Part B Quarterly Sales Pricing (ASP) file.
Next Steps for Stakeholders
- Many Medicare and Medicare Advantage beneficiaries should see reduced coinsurance or refunds for these rebatable drugs purchased after April 1, 2023.
- CMS’s determination of whether a drug is a Part B rebatable drug is considered final.
- Manufacturer suggestions of calculation errors may be submitted within 10 days after receipt of a Preliminary Rebate Report.
Date of Issuance: March 15, 2023