Lower Drug Costs for Families Act

This bill aims to lower prescription drug costs by curbing big price hikes. Today, drug makers must pay a rebate when certain Medicare drug prices rise faster than inflation. The bill would apply that same rule to drugs covered by private health insurance, so companies would owe rebates if they raise prices too quickly in the commercial market. It also moves the starting point used to measure price growth from 2021 back to 2016, which makes the test stricter. Manufacturers that don’t follow the rules can face civil penalties, as under current law.

Key points

• Who is affected: People with private health insurance, Medicare patients, drug manufacturers, and health plans.
• What changes: Extends inflation-based rebates to drugs in the commercial market; updates how “units” are counted (switching to “billing units”); and excludes certain units already covered elsewhere, like those paid by Medicaid, those already rebated under Medicare Part B, and starting in 2026, drugs sold with a 340B discount.
• When: Most Part D changes start with periods on or after October 1, 2025, and most Part B changes start January 1, 2026. The base year for calculating price growth is shifted to 2016 across these programs .