Medicare Drug Price Inflation Rebate Invoice Distribution Will Start In 2025, CMS Says

Coinsurance for Part B drugs may reflect rebates by April, and sponsors are already liable for them, but payments will be delayed several years as CMS develops its systems. Agency seeks comment on how to account for 340B discounts and make allowances for drug shortages, among other issues.

CMS Using Timing Flexibility Allowed By Law In Implementing Rebate Program • Source: Shutterstock

The Centers for Medicare and Medicaid Services will not begin sending out invoices for price inflation rebates owed by manufacturers on Parts B and D drugs until 2025 even though rebate liability has already begun, according to the agency.

The delay in releasing invoices is allowed by the Inflation Reduction Act, which established the rebate program, and will give CMS time to set up the appropriate systems for managing...

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