Lower Drug Costs for Families Act

Introduced March 27, 2025 by Catherine Marie Cortez Masto · Last progress March 27, 2025

Applies the prescription drug inflation rebate framework to drugs sold in the commercial market that are used under Medicare Part B and Part D. It updates several technical definitions and base-year dates used to calculate rebates, and it creates rules for which drug units count toward rebate calculations and which are excluded (for example, units paid for by Medicaid or subject to 340B discounts). The section also sets effective dates for the new calculation and counting rules.

The change expands how inflation rebates are calculated and collected, which will affect drug manufacturers’ rebate obligations, plan sponsors and payers for Part B and Part D drugs, and providers and programs affected by 340B and Medicaid payment rules. It also introduces new administrative and compliance steps for agencies and the private sector to implement the revised counting and definition rules.