Drug Companies to Face Inflation Penalties for ‘Jacked Up’ Prices, Says Biden

The White House announced on Thursday that 48 drugs will be subject to penalties after drugmakers raised prices faster than the rate of inflation.

Under President Joe Biden's Inflation Reduction Act (IRA), drug companies that price gouge may be required to pay rebates to Medicare, particularly focusing on those affecting over 750,000 seniors who rely on Medicare Part B drugs.

The rebates, effective in January, are expected to result in savings for seniors ranging from $1 to $2,786 per dose.

"President Biden’s prescription drug law cracks down on price gouging from Big Pharma, requiring companies to pay back Medicare if they raise prices on seniors at a higher rate than inflation," the White House said in a statement.

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