Capping Drug Costs for Seniors Act of 2022

The Capping Drug Costs for Seniors Act of 2022 establishes a new Manufacturer Discount Program that would require drug manufacturers to provide discounts on certain prescription drugs to Medicare Part D beneficiaries who have met their annual out-of-pocket threshold. Beginning in 2025, manufacturers would provide 90% discounts for beneficiaries who haven't met their out-of-pocket threshold and 80% discounts for those who have, replacing the existing Medicare Coverage Gap Discount Program which would sunset on January 1, 2025. The bill requires drug manufacturers to enter into agreements with the Secretary of Health and Human Services to provide these discounts for "applicable drugs" that are approved by the FDA and on a plan's formulary. This program would affect Medicare Part D beneficiaries, drug manufacturers, and Medicare prescription drug plans, with the discounts applied after beneficiaries have met their annual out-of-pocket threshold. The bill also amends Medicare Part D benefit structure to incorporate these new discount provisions into the calculation of out-of-pocket costs.