Unpacking the Inflation Reduction Act: Health Care Provisions
Our forum has long advocated for legislation to limit the escalating costs of prescription drugs, including eliminating the provision in Medicare Part D that prohibits the government from negotiating drug prices. This new legislation finally mandates some important steps to negotiate and control drug pricing for Medicare and Medicaid recipients. The passage of the Inflation Reduction Act will help lower drug costs in the following ways:
Extension of the Affordable Care Act (ACA/Obamacare)
For middle and lower-income people who buy private health insurance plans through the government exchanges (ACA/Obamacare), increased federal subsidies will continue for three more years (2023 - 2025).
Lowering Drug Prices
- The Secretary of Health & Human Services (HHS), must negotiate prices for some highest-spending drugs covered under Medicare. These changes will be implemented in the following way:
2027 - 15 additional Medicare Part D drugs,
2028 - 15 additional Medicare Part B and Part D drugs,
2029 - 20 additional Medicare Part B and Part D drugs.
- Drug companies will be required to pay rebates to Medicare if prices rise faster than inflation for drugs used by Medicare beneficiaries beginning in 2023.
- Vaccines for seniors and people in Medicaid and Medicare will be free starting in 2023.
Medicare Part D Redesign/Lowering Drug Prices through Part D
- The redesign eliminates 5% coinsurance for catastrophic coverage in Medicare Part D in 2024
- It adds a $2,000 annual cap on Part D out-of-pocket spending in 2025.
- It limits annual increases in Part D premiums for 2024-2030.
- It caps out-of-pocket insulin expenses at $35 a month for Medicare recipients beginning in 2023.
- It also expands eligibility for Medicare Part D Low-Income Subsidy full benefits in 2024.
Here's a great informative link with more information.