Association Between the Percentage of US Drug Sales Subject to Inflation Penalties and the Extent of Drug Price Increases

Key Points Question Are penalties for drug price increases higher than the rate of inflation associated with the extent of drug price increases in the US? Findings In this cross-sectional study of 606 brand-name drugs that were used annually by more than 5000 individuals with Medicare Part D from 2013 to 2017, increases in the percentage of drug sales subject to inflation penalties were associated with lower drug price increases. These lower price increases were associated with a reduction in Medicare Part D pharmacy expenditures of $7 billion over the period. Meaning The findings suggest that penalties for drug price increases that are higher than the rate of inflation may constrain drug price increases and drug spending.