Biden administration to impose inflation penalties on dozens of drugmakers

The Biden administration will subject dozens of drugmakers to inflation penalties, the White House said on Thursday, in a move that would reduce out-of-pocket costs for Medicare recipients.

President Joe Biden's signature Inflation Reduction Act (IRA) includes a provision to penalize drugmakers for charging prices that rise faster than inflation for people on Medicare, a government program for those age 65 and older and the disabled.(https://www.reuters.com/business/healthcare-pharmaceuticals/dozens-companies-raised-drug-prices-faster-than-inflation-white-house-says-2023-12-14/)