Inflation Reduction Act Advances Medicare Drug Benefits
TL/DR –
Dr. Meena Seshamani, director of the Center for Medicare, discussed the significant changes in Part D, the Medicare drug prescription program, resulting from the Inflation Reduction Act. She highlighted key points such as the new $2,000 out-of-pocket spending cap under Part D, which is expected to save seniors $7.4 billion in out-of-pocket costs; the free shingles vaccine for seniors, and the capping of insulin copays to a maximum of $35 per month. Seshamani also addressed the complexities of choosing a plan on the Medicare Plan Finder, the steps being taken to combat misleading advertising, and said that if manufacturers increase prices faster than inflation, they must pay the difference.
Medicare Director Discusses Prescription Drug Benefits of the Inflation Reduction Act
Dr. Meena Seshamani, Director of the Center for Medicare, discussed the most significant changes in Part D of the Medicare drug prescription program brought about by the Inflation Reduction Act in a session moderated by Ed Silverman, a senior writer at STAT News.
Speaking at Health Journalism 2024, Seshamani outlined how the Act will benefit Medicare’s 65 million beneficiaries. “Seniors across the country are excited about the numerous benefits of this law,” she stated.
Emphasizing the cost savings for seniors, Seshamani pointed out that the new $2,000 out-of-pocket spending cap under Part D will save seniors $7.4 billion. Additionally, the shingles vaccine, which previously cost $200, is now free due to the Act. She encouraged journalists to share this information to ensure seniors are aware of these changes.
Seshamani further mentioned that the Act’s free vaccine plan has propelled the number of seniors getting vaccinated from 3 million to 10 million.
Upon being questioned about the new insulin copay cap, Seshamani highlighted that about 4 million seniors are already benefiting. The Act stipulates that a Medicare drug plan can’t charge more than $35 for a one-month supply of insulin.
When asked about objections from pharmaceutical companies, Seshamani reassured that her team is constantly in negotiation and seeks feedback from stakeholders and consumers to develop feasible plans.
In addressing the complexities of selecting a plan on the Medicare Plan Finder, Seshamani acknowledged the issue of misleading advertising for Medicare Advantage and open enrollment. “Over 1,000 TV ads were rejected in the latest round of open enrollment for not adhering to our regulations,” she informed.
Seshamani also drew attention to the inflation rebates in the Act, which discourage rapid price increases by manufacturers and make them accountable for any differences.
Confirming that the Center for Medicare Services (CMS) is on schedule, Seshamani concluded that everything would be wrapped up by Sept. 1.
The session was attended by approximately 35-40 participants.
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