WASHINGTON, March 15 (Reuters) - The U.S. government will subject 27 drugs to inflation penalties, it announced on Wednesday, meaning people on Medicare will pay less out-of-pocket by $2 to as high as $390 per average dose starting April 1.
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 (ABBV.N) blockbuster arthritis drug Humira, Gilead Sciences Inc's (GILD.O) Car-T cancer therapy Yescarta and Seagen Inc's (SGEN.O) 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.