Friday, 8 Dec. 12, 2022 (HealthDay News) — The Reducing Inflation Act promises to lower out-of-pocket drug costs for many older Americans, but most of its benefits aren’t immediate.
By law, Medicare is now allowed to negotiate the cost of certain drugs. That should ultimately lower out-of-pocket costs for seniors with Medicare Part D prescription drug plans, according to John Clark, a clinical associate professor at the University of Michigan School of Pharmacy. Previously, Medicare did not allow negotiating drug prices.
By law – after it goes to President Joe Biden to the U.S. House of Representatives for approval – from 2026 , the number of drugs will gradually increase, there are 10 kinds of drugs. Starting next year, drug companies will be required to pay rebates if drug prices rise faster than inflation, as they often do.
Also starting next year, Part D recipients will be vaccinated for free. These savings are not passed on to seniors with private insurance.
2024, Part D Disaster 5% coinsurance required for sex insurance terminates. This is expected to benefit approximately 3 million Americans.
Beginning in 2025, the maximum limit for Medicare beneficiaries is $2,000.
The Congressional Budget Office predicts that the reforms will save the government $288 over 10 years and more than $1 billion.
It remains to be seen whether the new law will actually benefit patients, Clark noted in a report to the University Press release, but this is the first drug price intervention in the world for Americans who pay more for the same drugs.
Clark said the new law did not include a cap on the price of insulin for all Americans, which some see as a pharmaceutical Company victory.
The Centers for Medicare and Medicaid Services has more on Information on federal health insurance plans.
Source: American University of Michigan, Press Release, August 9, 2022