Act Seeks to Lower Prescription Drug Prices and Health Care Premiums through Inflation Reduction

Impact of the Inflation Reduction Act on Health Care Costs

With the recent passage of the Inflation Reduction Act in the Senate by a narrow margin, many are curious about the potential benefits awaiting them once President Joe Biden signs it into law.

Entitlements Under the Inflation Reduction Act

Millions of Americans could benefit from reduced health insurance fees and prescription drug costs under this act.

The legislation includes capping out-of-pocket prescription payments for Medicare beneficiaries at $2,000 annually by 2025. It will also empower Medicare to negotiate better deals on prescription drugs, a long-awaited move according to U.S. Department of Health and Human Services Secretary Xavier Becerra.

These groundbreaking changes will allow the government to negotiate drug prices, reducing the influence of manufacturers on medication costs. Despite the positive outlook, the full implementation may take some time, with the negotiation process starting in 2026 for certain medications.

Some have criticized the act for not addressing a $35/month cap for insulin under private insurance, which is essential for the millions of Americans living with diabetes.

Financial Benefits for Americans

Additionally, an estimated 13 million Americans could see a decrease in their monthly health insurance premiums, with Affordable Care Act beneficiaries saving an average of $800 annually, as per Secretary Becerra.

This move aims to make healthcare more affordable and accessible for all Americans, providing relief to those struggling with rising costs.

Conclusion

As the Inflation Reduction Act progresses towards becoming law, the potential benefits for Americans in terms of reduced prescription drug costs and health insurance premiums are significant. This legislation marks a step towards a more affordable and inclusive healthcare system for all.

Original article source: Inflation Reduction Act Seeks to Improve Prescription Drug Prices, Reduce Health Care Premiums