54 Medicare Drugs That Will Soon Cost Less

Some people with Medicare could spend less money on potentially life-saving medications through the end of the year.

The U.S. Department of Health and Human Services (HHS) announced that 54 drugs available through Medicare Part B will be subject to a lower coinsurance rate between October 1 and December 31 because prices set by manufacturers have increased faster than the rate of inflation.

Medications covered by Part B are typically administered in a doctor's office or hospital and may include cancer treatments, Alzheimer's treatments, and injectable osteoporosis medications.

Under a provision of the AARP-backed Prescription Drug Act of 2022, coinsurance rates for these 54 drugs are 20 percent of what the price would have been had it increased with inflation, which is less than what beneficiaries would otherwise pay would . Drug manufacturers will also face penalties in the form of reimbursement to Medicare for the price increases. These funds will be used to ensure the sustainability of the national health insurance program, which covers more than 67 million Americans who are elderly or have a disability.

Some have seen significant savings

More than 822,000 people with Medicare use the 54 selected medications annually to treat conditions such as cancer, osteoporosis and pneumonia. According to HHS, some Medicare patients taking these drugs could see savings ranging from $1 per day to more than $3,000 per day in the final quarter of the year.

How much each person pays for their medications depends on whether they have supplemental insurance that covers or reduces Part B's 20 percent coinsurance rate. The list price for some of these drugs is hundreds of thousands of dollars per treatment.