Inflation Reduction Act and Medicare Changes
This post will go over the Inflation Reduction Act and Medicare changes. The goal of the Inflation Reduction Act is to provide some financial relief for Medicare beneficiaries by making adjustments to the Medicare program. The new prescription law improves the Medicare program by expanding benefits, lowering drug costs and keeping the drug plan premiums stable.
Inflation Reduction Act and Improvements to Medicare Part D:
Medicare beneficiaries will have access to lower prescription drug costs as well as a redesigned prescription drug program. This new program includes benefits such as:
A $35 monthly co-pay for covered insulin prescriptions.
An annual cap of $2,000 on out-of-pocket costs, starting in 2025.
No cost for recommended adult vaccines.
Starting in 2024 the LIS/Extra Help program under Part D will be expanded to include 150% of the federal poverty level.
Inflation Reduction Act and Price negotiation of Medicare prescription drugs:
This is an important change. It gives Medicare the power to negotiate the cost of prescription drugs directly with the manufacturers. This will lead to lower costs on some of the most expensive, brand-name Medicare Part B and Part D drugs. Because of this change, more people will be able to afford the life saving treatments they need.
The inflation reduction act requires drug companies that raise their prices faster than the rate of inflation to pay Medicare a rebate. Because of this, drug manufacturers will be discouraged from charging Medicare beneficiaries ridiculous price increases.
Inflation Reduction Act and Changes to Medicare Part B:
Changes in the Medicare Part B program will improve access to high quality, affordable biosimilars for people with Medicare as well as impose a $35/month cost-sharing cap on insulin used in durable medical equipment pumps.
The Inflation Reduction Act makes Medicare stronger for current and future enrollees. It makes health care more accessible, equitable, and affordable by lowering what Medicare spends for prescription drugs and limiting increases in prices.