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The Inflation Reduction Act (IRA) was implemented to manage the ever-increasing costs of prescription medications, specifically under Medicare. It also allows drug price negotiations and manufacturer rebates. In 2022, President Joe Biden signed the Inflation Reduction Act (IRA), which aims to minimize the effects of rising U.S. healthcare costs. The 2022 IRA makes vaccinations free for everyone with Medicare and caps out-of-pocket costs for millions more. The act also authorizes Medicare to negotiate some drug prices directly with drug manufacturers — the first time this has been allowed. How does the Inflation Reduction Act affect Medicare? Since President Biden signed the act, many changes have been implemented, and more are due to take place in the future. Manufacturer rebates to Medicare From 2023, drug manufacturers began paying Medicare rebates for medications included in Part D plans if the price increases for those drugs exceeded the rate of inflation. This has meant a much slower overall price increase. Some medications are eligible for payment under Part B. And from 2028, the IRA will begin adding Part B drugs to the negotiation program. Insulin price caps Under the Medicare prescription drug benefit, insulin costs were capped at $35 from October 1, 2022, until January 1, 2024. Then, insulin was either capped at $35 or 25% of a plan’s negotiated price, whichever was less. This applies even if you haven’t met your Part D prescription drug plan deductible. Extra Help availability increases In 2024, Medicare’s Extra Help program changed, resulting in more people being eligible and experiencing greater savings on their prescription medications. If you qualify for Extra Help, you’ll pay a $0 premium and deductible for your Part D prescription drug plan, as well as the following out-of-pocket costs: Drug price negotiations From 2026, Medicare-negotiated drug prices will start to take effect. For the first time in history, Medicare has the legal power to directly negotiate prices of specific high cost medications. Different medications have been selected for negotiation over the coming years: 10 drugs for 2026 negotiationCommonly prescribed for 15 drugs for 2027 negotiationCommonly prescribed for Takeaway The IRA aims to save people money on their prescription medications in many ways, and these cost savings should continue over the coming years. A greater number of older adults with fixed incomes and limited resources can benefit from Extra Help. And the drug negotiations taking place until 2029 could mean greater medication savings for everyone with Medicare. The information on this website may assist you in making personal decisions about insurance, but it is not intended to provide advice regarding the purchase or use of any insurance or insurance products. Healthline Media does not transact the business of insurance in any manner and is not licensed as an insurance company or producer in any U.S. jurisdiction. Healthline Media does not recommend or endorse any third parties that may transact the business of insurance. (责任编辑：) |