US Medicare Part D Inflation Is Real, MedPAC Rebate Data Show

The US Medicare Payment Advisory Commission shares its first looks at the impact of rebates in the Medicare Part D program. Rebates do indeed distort the overall spending trends, the analyses suggest – but underlying prices are still increasing relatively quickly.

drug costs
• Source: Alamy

The US Medicare Payment Advisory Commission’s first public presentation on analyses based on Part D rebate data show that drug price inflation in the program is, in fact, relatively high – even after accounting for rebates.

In a presentation during MedPAC’s 7-8 April meeting, MedPAC staff showed a comparison of the gross Part D drug spending trends that the commission has relied on in the past versus net pricing taking into account rebates, which is based on data that MedPAC only began receiving recently following legislation enacted at the end of 2020

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