Medicare inflation reduction act
Medicare inflation reduction act – Improvements to Medicare Part D:
Moving forward, people on Medicare will benefit from lower prescription drug costs as well as a redesigned prescription drug program. Updated benefits include:
- Insulin will be available at $35 per month, as long as it is on Medicare’s list of approved insulin prescriptions. This program does not apply to the very expensive insulin type drugs like Toujeo, Tresiba, Victoza, Januvia or Ozempic..
- Beneficiaries can access recommended adult vaccines without cost-sharing, such as Shingrix.
- Starting in 2025, the out-of-pocket costs of prescription drugs for Medicare plan members will have an annual cap of $2,000.
- The low-income subsidy program (LIS or “Extra Help”) under Medicare Part D will be expanded to 150% of the federal poverty level starting in 2024.
Medicare Drug Price Negotiation:
Medicare will be able to negotiate directly with drug manufacturers to lower the price of some prescription Medications. This applies to many of the most expensive, single-source, brand-name Medicare Part B and Part D drugs. In other words, people on Medicare will have more access to both innovative & life-saving treatments as the costs of these prescription drugs will be more affordable to them as well as to Medicare.
The new law will require any drug company that raises their drug prices faster than the rate of inflation to pay Medicare a rebate. This law will protect Medicare beneficiaries from unreasonable drug price increases put in place by the drug companies. This will ensure that both current and future Medicare enrollees are protected by a strong Medicare system.
Medicare inflation reduction act – Medicare Part B changes:
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 a month cost-sharing cap on insulin used in durable medical equipment pumps.