Biden’s Inflation Reduction Act lowers prescription drug costs for seniors

How President Biden’s IRA is Revolutionizing Medicare Drug Costs

Medicare Changes Saving Seniors Thousands

President Biden’s Inflation Reduction Act (IRA) is reshaping the landscape of Medicare drug costs. In 2025, Medicare beneficiaries will have a $2,000 out-of-pocket cap for prescription drugs covered under Part D. This cap, combined with the elimination of the 5% cost requirement for brand-name drugs, will provide significant savings for seniors.

Expanded Subsidies for Low-Income Seniors

The IRA has expanded access to federal subsidies, known as Extra Help, for low-income American seniors. Income limits have been increased, allowing more seniors to benefit from up to $5,300 in assistance annually. Nearly 300,000 low-income Medicare beneficiaries will automatically receive this expanded benefit, with the potential for three million more to qualify.

Applying for Extra Help

To apply for the Extra Help subsidy, click here.

Medicare Negotiating Drug Prices

For the first time, Medicare is authorized to negotiate prices for costly drugs with pharmaceutical companies. The IRA will penalize companies for price increases exceeding general inflation rates. Negotiations will target drugs like Eliquis, Xarelto, Jardiance, Januvia, and others, with the aim of making medications more affordable without compromising profitability.

Projected Savings and Impact

The negotiated prices are expected to save up to nine million seniors money on prescription drugs by 2026. This initiative will also save taxpayers $160 billion by reducing Medicare’s drug costs through negotiation and inflation rebates.

Pharmaceutical Industry Response

Despite the benefits, pharmaceutical companies are challenging the negotiations in court, arguing that the regulations are unconstitutional and could hinder future medical advancements. Health care advocates, however, have lauded the negotiations and the IRA as historic steps towards affordable healthcare.

Praise for the Historic Reforms

Health care advocates and patients alike have praised the IRA for its transformative impact on Medicare drug costs. The reforms outlined in the legislation have been described as the most significant changes to the Medicare D program since its inception in 2006. Patients are hopeful that these changes will lead to more affordable access to life-saving medications.

Author: Isabel Soisson

Read More of this Story at – 2024-03-27 18:27:07

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