Seniors can save thousands per year in medication costs and reduce prices throughout the health system.
The Inflation Reduction Act of 2022 will improve Americans’ health while making both health insurance and prescription drugs more affordable for millions of Americans.
The Biden-Harris Administration has made it a priority to make sure more Americans have access to affordable, high quality health insurance by strengthening the Affordable Care Act (ACA) and reducing health insurance premiums for millions of people,” says Juan Carlos “JC” Doitteau, President at Insurance Pro.
But how would this bill make drugs more affordable to middle-class Americans? And what happens to the prescription of vital medicines?
The Inflation Reduction Act will lower prescription drug costs for families by placing limits on how much families and Medicare can be charged for vital medicines.
Among other provisions, the Inflation Reduction Act gives Medicare the ability:
- to negotiate the price of certain prescription drugs
- to force drug companies to pay a penalty when the prices they charge Medicare rise faster than inflation
Allowing Medicare to negotiate for prescription drug prices will save billions per year, without deterring significant medical innovation
Allowing drug negotiation in Medicare — the federal health insurance program for older Americans and those with disabilities — may help make medicines more affordable. Read more about Medicare: Benefits, Plans, Coverage.
If signed into law, the economic package would prevent huge spikes in the cost of health insurance for roughly 13 million Americans. It would limit seniors’ drugs costs at $2,000 a year.
The bill also caps annual out-of-pocket prescription drug costs at $2,000 for Medicare enrollees starting in 2025 and limits insulin co-pays for Medicare beneficiaries to $35 a month,” adds Juan Carlos “JC” Doitteau.
The legislation also caps the cost of insulin. Please come back to this blog in a few weeks as we will be posting updates as the story evolves.
Read also: Frequently Asked Questions on Medicare.
Some of the insurance companies that we work with for Medicare plans are: Wellcare, United Healthcare, Ambetter, Careplus, Humana, Freedom, Devoted Health Florida, to mention a few.
Learn about this and other fringe benefits by contacting Insurance Pro experts.