The Medicare prescription drug rebate rule requires drug manufacturers to pay rebates (or penalties) to Medicare if they increase the cost of drugs used by Medicare beneficiaries at a higher rate than inflation. This rebate will lessen the coinsurance amount required by the Medicare enrollee when receiving a drug covered by Medicare Part B.
The Medicare inflation rebate provision uses 2021 as the baseline year for determining price changes relative to inflation, and the current drug list is valid from July 1, 2023, to September 30, 2023. From there, the average inflation rate will determine which drugs are eligible for the penalty.
If prescribed an eligible drug, your typical 20% Medicare Part B copayment amount will be reduced.