Lower Drug Costs for Families Act
Sponsored By: Representative Horsford
Introduced
Summary
Apply prescription-drug inflation rebates to drugs sold in the commercial market for Medicare Part B and Part D. This bill would rewrite how Medicare calculates inflation rebates by changing counting methods, expanding which units are counted or excluded, and moving key base years back to 2016.
Show full summary
- Families and Medicare enrollees: Would make more drugs used by Medicare beneficiaries subject to inflation rebates by including drugs furnished in the commercial market for both Part B and Part D.
- Medicare Part B: Would switch rebate math from counting simple units to counting billing units with a new three-step billing-unit method and reset base-year references to 2016. Those Part B changes apply to calendar quarters on or after January 1, 2026.
- Medicare Part D and manufacturers: Would redefine the Part D rebate numerator to use units reported for average manufacturer price (AMP), add reporting and revision requirements, exclude certain units such as 340B doses, and reset Part D base years to 2016. Those Part D changes apply to periods beginning on or after October 1, 2025.
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Bill Overview
Analyzed Economic Effects
2 provisions identified: 0 benefits, 0 costs, 2 mixed.
New rebate math for Medicare Part B drugs
This bill would change how Medicare counts Part B drug use for inflation rebates. Starting January 1, 2026, it would use billing units instead of raw unit counts. It would also move key base-year dates back to 2016. These shifts could change manufacturer rebate bills and, in turn, plan costs, premiums, or what you pay for some Part B drugs.
New rebate rules for Medicare Part D drugs
This bill would change how Medicare counts Part D drug units for inflation rebates starting October 1, 2025. It would use the monthly units from average manufacturer price reports. It would exclude Medicaid-paid units and units already rebated under Part B; starting plan year 2026, it would also exclude 340B discount units. It would move base-year dates to 2016. These changes could shift manufacturer rebate bills and may affect plan costs, premiums, or your out-of-pocket costs.
Sponsors & CoSponsors
Sponsor
Horsford
NV • D
Cosponsors
Cherfilus-McCormick
FL • D
Sponsored 4/1/2025
Johnson (GA)
GA • D
Sponsored 4/1/2025
Roll Call Votes
No roll call votes available for this bill.
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