Lower Drug Costs for Families Act

This bill modifies how Medicare calculates rebates for certain drugs to potentially lower costs for beneficiaries. It changes the reference year for rebate calculations from 2021 back to 2016 for both Medicare Part B (outpatient drugs) and Part D (prescription drug coverage) programs. The bill also adjusts how drug units are counted for rebates, excluding units paid for through state Medicaid programs or other existing rebate programs. These changes apply to Part B rebates starting January 2026 and Part D rebates starting October 2025. The policy directly affects drug manufacturers who pay Medicare rebates and impacts Medicare beneficiaries through potential cost reductions in covered drugs.