The Washington Report
October 9, 2024
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While we do our best to provide timely updates, it is possible that the information shared in the newsletter may change after our publication deadline.
Health
HHS Releases Final Guidance for Second Cycle of Medicare Drug Price Negotiation Program
On October 2, 2024, the Department of Health and Human Services (HHS) released final guidance outlining the process for the second cycle of negotiations under the Medicare Drug Price Negotiation Program, as part of the continued implementation of the Inflation Reduction Act. The guidance also explains how HHS will help ensure people with Medicare can access drugs at the negotiated prices from the first and second cycles when those prices become effective beginning in 2026 and 2027, respectively. In August 2024, HHS announced the negotiated prices for the 10 drugs selected for the first cycle of negotiations. The final guidance outlines requirements and parameters for how participating drug companies must ensure eligible people with Medicare prescription drug coverage will have access to the negotiated prices for 2026 and 2027, including procedures that apply to participating drug companies, Medicare Part D plans, pharmacies, mail order services, and other entities that dispense drugs covered under Medicare Part D. Please refer to the final guidance for specific provisions.
The news release is available here.
The final guidance is available here.
The Fact Sheet: Medicare Drug Price Negotiation Program Final Guidance for 2027 and Manufacturer Effectuation of the MFP in 2026 and 2027, is available here.
IRS Releases Text of 2024 Instructions for IRS Forms 1094-B/C and 1095-B/C
On October 2, 2024, the Internal Revenue Service (IRS) posted the 2024 Instructions for the following health coverage forms on its website:
- Form 1094-B Transmittal of Health Coverage Information Returns;
- Form 1095-B Health Coverage;
- Form 1094-C Transmittal of Employer-Provided Health Insurance Offer and Coverage Information Returns; and
- Form 1095-C Employer-Provided Health Insurance Offer and Coverage.
The text of the 2024 Instructions for IRS Forms 1094-B and 1095-B is available here.
The text of the 2024 Instructions for IRS Forms 1094-C and 1095-C is available here.
HHS Announces Cost Savings for 54 Prescription Drugs Under Medicare Inflation Rebate Program
On September 30, 2024, HHS announced cost savings for 54 prescriptions drugs as part of the Medicare Inflation Rebate program, which was established by the Inflation Reduction Act. The drugs will have a lowered Part B coinsurance rate from October 1, 2024, through December 31, 2024. The Inflation Reduction Act requires drug companies to pay rebates to Medicare when prices increase faster than the rate of inflation for certain drugs. HHS intends to begin invoicing prescription drug companies for rebates owed to Medicare no later than fall 2025.
The news release is available here.
The HHS Fact Sheet: Reduced Coinsurance for Certain Part B Rebatable Drugs Under the Medicare Prescription Drug Inflation Rebate Program, is available here.