US Implements Inflation Fines to Lower Drug Costs.

The US government will impose inflation penalties on 27 drugs, including AbbVie's Humira and Gilead's Yescarta, starting April 1, meaning people on Medicare will pay less out-of-pocket by $2 to as high as $390 per average dose. Companies that raise prices higher than the inflation rate will be required to pay Medicare the difference in the form of a rebate, and those that fail to pay the rebate will face a penalty equaling 125% of the rebate amount. The government will start invoicing the companies for the rebates in 2025 but Medicare will start reducing out-pocket-costs for members in April.