Savings from drug pricing law will be smaller than expected: CBO

WASHINGTON – A key aspect of the Democratic-passed drug price reduction bill is significantly more expensive for the government than expected, bipartisan congressional budget experts say.

Redesigning the Medicare Part D drug benefit will cost $10 billion to $20 billion more next year than the Congressional Budget Office originally forecast. That office estimates that a separate, recently announced program to pay insurers for lower drug premiums will cost $5 billion.

Republicans pounced on the news, saying drug pricing measures in the Inflation Reduction Act led to an increase in the cost of prescription drug coverage.