Act Pushes to Lower Prescription Costs, Health Care Premiums

TL/DR –

The Inflation Reduction Act, recently passed in the Senate, is set to decrease health insurance fees and prescription drug costs for millions of Americans. The act includes caps on out-of-pocket prescription payments for Medicare users, limited to $2,000 annually by 2025, and enables Medicare to negotiate better deals on prescription drugs. However, the changes will not take immediate effect, with negotiations on 10 medications starting in 2026 and 10 more by 2029; the act has also been criticized for not including a $35/month cap on insulin for those on private insurance.

The Inflation Reduction Act’s Impact on Health Insurance and Drug Costs

The recent Inflation Reduction Act passed in the Senate, with VP Kamala Harris breaking the tie. The expected enactment by President Biden leads to questions about the potential benefits.

Social Security earnings and retirement planning are other recent topics of interest.

Millions will benefit from this Act through reduced health insurance and prescription costs. The Act includes caps on prescription payments for Medicare users at $2,000 annually by 2025. It also enables Medicare to negotiate better deals on drug costs, according to HHS Secretary Xavier Becerra. This novel legislation helps negotiate fees for expensive drugs, decreasing manufacturers’ monopoly.

However, changes will take time, and the lack of a $35/month cap on insulin for private insurance users has drawn criticism. This, despite insulin being a costly essential for the 37.3 million Americans with diabetes. Updates to SNAP and the highest income for food stamps in 2022 also remain of interest.

Additionally, 13 million Americans are projected to have reduced health insurance premiums. Those with Affordable Care Act coverage could save an average of $800 per year.

Learn more about the Inflation Reduction Act’s effects on drug prices and health care premiums.

—
Read More US Economic News