Article Summary –
The Inflation Reduction Act introduces a $2,000 annual out-of-pocket cap on prescription drugs for Medicare Part D beneficiaries, effective January 1, 2025, benefiting approximately 19 million Americans and saving them an average of $400 each. Additionally, the Act includes a $40 monthly insulin cost cap for about 4 million Medicare subscribers and permits Medicare to negotiate drug prices with pharmaceutical companies. Despite its benefits, the Act faces opposition from Republicans, who seek its repeal in favor of tax breaks for billionaires, as highlighted by advocacy groups and Democratic lawmakers who supported the legislation.
Millions of Americans in Medicare Part D will see prescription drug costs capped at $2,000 annually due to the Inflation Reduction Act, effective Jan. 1, 2025.
President Joe Biden signed the health care and clean energy bill in August 2022 after Democrats passed it without Republican support. This legislation also caps insulin costs at $40 monthly for 4 million Medicare subscribers and empowers the program to negotiate drug prices.
The Department of Health and Human Services estimates the $2,000 cap will help nearly 19 million Americans in 2025, saving them an average of $400 each. Those with high prescription costs will see a $2,500 reduction on average.
CBS News MoneyWatch reported that Ryan Ramsey from the National Council on Aging noted the significance of having a predictable out-of-pocket expense cap.
Republicans now control the U.S. House and Senate with narrow majorities. Some have expressed the intention to repeal the Inflation Reduction Act if Donald Trump regains the presidency. The Republican Study Committee calls for its repeal in the 2025 budget proposal. The Heritage Foundation’s Project 2025 also seeks the law’s elimination.
“This cap is a breakthrough for seniors,” said Leslie Dach of Protect Our Care in a statement. “President Biden and Democrats took on big drug companies to lower prices, ensuring seniors don’t sacrifice basic needs. Republicans opposed this and aim to raise costs by rescinding these changes, prioritizing tax breaks for billionaires over American families.”
Michigan Democrats like Senators Gary Peters and Elissa Slotkin, and Representatives Debbie Dingell, Haley Stevens, and Rashida Tlaib supported the law.
Michigan Republican Reps. Jack Bergman, Bill Huizenga, Lisa McClain, John Moolenaar, and Tim Walberg opposed it.
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