Bill > S1186

This bill aims to lower drug costs by modifying how prescription drug inflation rebates are calculated and applied in both Medicare Part B (which covers medical services and supplies) and Part D (which covers prescription drugs). Specifically, the bill changes the base year for calculating these rebates from 2021 to 2016, which could potentially increase the amount of rebates pharmaceutical manufacturers must pay when drug prices rise faster than inflation. The bill requires manufacturers to exclude certain units of drugs from rebate calculations, such as those paid for by state Medicaid programs or those with discounts under the 340B drug pricing program. For Part B drugs, the bill adjusts how billing units are calculated by subtracting units already covered by other programs from the total units reported. For Part D drugs, similar changes are made to how average manufacturer prices are calculated. These amendments would take effect in January 2026 for Part B drugs and October 2025 for Part D drugs, with the goal of reducing healthcare costs for patients by creating financial incentives for drug manufacturers to keep price increases in check.

Budget and Finance

https://www.congress.gov/bill/119th-congress/senate-bill/1186/all-info