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

48 drugs will be subject to penalties come January

U.S. President Joe Biden speaks about lowering prescription drug costs at the National Institutes of Health in Bethesda, Md., on Dec. 14, 2023. Brendan Smialowski/AFP via Getty Images

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.