Opinion: How states can act to limit drug price increases, saving employers and workers billions
The Inflation Reduction Act of 2022 mandates that Medicare-covered drug sales will be protected from price increases that exceed inflation, but the mechanics of this “inflation penalty” have generated some confusion.
A top Medicare official recently noted that the per-pill value of the Medicare inflation penalty will be calculated based on average prices across both the Medicare and commercial markets, but the penalty will be paid only on prescriptions reimbursed by Medicare.
