Build Back Better Act’s drug inflation rebate would lower premiums by $111 billion over the next decade.
The average price of prescription drugs in the United States continues to climb. Several provisions related to prescription drug pricing included in the Build Back Better Act would lower drug costs for those with Medicare and private insurance, decreasing federal government and private payer drug spending.
The Build Back Better Act’s drug inflation rebate provision would reduce premiums by $3 billion in 2023 and $21 billion in 2031.
Premiums would fall by 0.4 percent in 2023 and 1.7 percent in 2031.
Premiums would be a total of $111 billion lower between 2022 and 2031, and the average annual reduction in premiums between 2022 and 2031 would be 1.1 percent.
Limiting annual increases in drug prices through inflation rebates improves access to regular care and affordability, while generating billions of dollars in savings for the federal government and private insurers.
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The nonprofit Urban Institute is dedicated to elevating the debate on social and economic policy. For nearly five decades, Urban scholars have conducted research and offered evidence-based solutions that improve lives and strengthen communities across a rapidly urbanizing world. Their objective research helps expand opportunities for all, reduce hardship among the most vulnerable, and strengthen the effectiveness of the public sector. Visit the Urban Institute Health Policy Center for more information specific to its staff and its recent research.
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The Build Back Better Act's provisions are expected to extend health insurance coverage to millions of people and to lower the cost of healthcare for many families