Biden administration to impose inflation penalties on dozens of drugmakers

The Biden administration will subject dozens of drugmakers to inflation penalties, the White House said on Thursday, in a move that would reduce out-of-pocket costs for Medicare recipients.

President Joe Biden's signature Inflation Reduction Act (IRA) includes a provision to penalize drugmakers for charging prices that rise faster than inflation for people on Medicare, a government program for those age 65 and older and the disabled.