Medicare and Insurance can be complicated to navigate and doing it on your own can be overwhelming. Please read the following regarding the information surround the Inflation Reduction Act and how it can impact your Medicare plan. Then after you read this page, be sure to contact us right away to ask questions, set an appointment, or to come see us in person at any of our upcoming seminars in the Toledo, OH area (both in person and virtual options are being posted every day). You are not alone. Let Next Step Insurance help you during the upcoming open enrollment window.
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Key Improvements Under the Inflation Reduction Act
1. Lower Prescription Drug Costs:
The IRA brings substantial changes to Medicare Part D, resulting in lower prescription drug costs for beneficiaries. Key benefits include:
– Insulin at $35/month: Patients will pay only $35 per month for covered insulin prescriptions.
– Free Adult Vaccines: Access to recommended adult vaccines without any cost-sharing.
– Out-of-Pocket Cap: A yearly limit of $2,000 on out-of-pocket prescription drug expenses starting in 2025.
– Expanded Low-Income Subsidy Program: The Low-Income Subsidy (LIS) program, also known as “Extra Help,” will expand to cover individuals earning up to 150% of the federal poverty level beginning in 2024.
2. Medicare Drug Price Negotiation:
The IRA empowers Medicare to negotiate directly with drug manufacturers to lower prices on some of the most expensive brand-name drugs under Medicare Part B and Part D. This negotiation will enhance access to innovative and life-saving treatments while reducing costs for both beneficiaries and the Medicare program.
3. Inflation Rebates:
The new law mandates that drug companies must pay rebates to Medicare if they increase drug prices faster than the inflation rate. This provision aims to create a more robust Medicare system for current and future enrollees and to deter unreasonable price hikes by pharmaceutical companies.
4. Changes to Medicare Part B:
The IRA introduces changes to Medicare Part B, improving access to high-quality, affordable biosimilars. Additionally, it establishes a $35/month cost-sharing cap on insulin used in durable medical equipment pumps.
Conclusion
The Inflation Reduction Act significantly strengthens Medicare, making healthcare more accessible, equitable, and affordable. By lowering prescription drug costs and limiting price increases, the IRA ensures that Medicare remains a vital resource for millions of Americans today and in the future.