Are Drug Prices Really as Low as Joe Biden Says?

President Joe Biden’s Impact on Insulin Costs

President Joe Biden‘s recent claims about dramatic reductions in insulin costs for Medicare beneficiaries are being scrutinized.

US President Joe Biden speaks to a crowd. While Biden’s assertion that insulin prices have dropped to $35 per month under the IRA is accurate for Medicare beneficiaries, the claim that prices were uniformly around…

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Analysis and Legislative Impact

Speaking at an event in Nevada, Biden highlighted the significant decrease in insulin costs for Medicare beneficiaries, from an average of $400 to $35 per month under the Inflation Reduction Act.

Although the act implemented a price cap benefiting many, further analysis suggests that the previous $400 monthly average oversimplifies the pricing landscape.

The Inflation Reduction Act, signed into law by Biden in 2022, specifically targets out-of-pocket expenses for Medicare beneficiaries, capping them at $35 per month.

Research and Findings

Research indicates that while some Medicare beneficiaries experienced high out-of-pocket costs, the figures varied widely depending on their insurance plan’s coverage phase and individual medication requirements.

A 2023 report from the Department of Health and Human Services estimates that the cap would have saved Medicare beneficiaries an average of $500 annually on insulin in 2020.

Despite the cap, Medicare Part D’s structure can still result in variability in what patients pay throughout the year, making it challenging for patients to predict monthly expenses.

Insulin Cost Variation

According to the Health Care Cost Institute, a small percentage of insulin users under employer-sponsored insurance plans were near the $400 mark in monthly expenses even before the Inflation Reduction Act took effect.

The actual costs incurred by Medicare beneficiaries varied widely due to several factors including insurance coverage phases and specific insulin delivery systems used.

Newsweek has reached out to both the White House and the Department of Health and Human Services for comment by email.

Read More of this Story at – 2024-04-08 14:37:30

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