Article Summary –
Project 2025 proposes repealing the Inflation Reduction Act (IRA), potentially causing millions of seniors on Medicare to experience higher prescription drug costs. Over the past two years, the IRA has helped lower drug costs, with policies such as a $35 monthly cap on insulin for seniors, free vaccines covered under Medicare Part D, and the spreading out of total annual Medicare Part D out-of-pocket costs over the year. However, if the IRA is repealed, an estimated 18.5 million Medicare enrollees could pay more for their medications and Medicare’s ability to negotiate drug prices with pharmaceutical companies would be ended.
Project 2025 seeks to repeal Inflation Reduction Act, potentially increasing prescription drug costs for American seniors.
Over the past two years, Medicare seniors have seen reduced drug costs thanks to Biden’s Inflation Reduction Act (IRA). If Trump wins the upcoming election and implements Project 2025, up to 18.5 million Medicare members may face higher medication costs, according to analysis from the Center for American Progress.
How the Inflation Reduction Act benefits seniors
The IRA reformed Medicare, lowering drug costs for American seniors with Medicare Part D coverage. This law introduced a $35 monthly cap on insulin and led to over 28,000 Arizona seniors on Medicare saving an average of $517 annually on their insulin prescriptions.
The IRA also offers free vaccines under Medicare Part D, the ability to spread out annual out-of-pocket costs, and expanded access to federal subsidies for low-income seniors. These policies are currently under threat.
Project 2025’s potential impact
A 900-page plan by the Heritage Foundation, Project 2025, proposes to repeal the IRA, which could lead to higher out-of-pocket costs for millions of Medicare beneficiaries. In Arizona, without the IRA’s $2,000 annual out-of-pocket cap, an estimated 33,000 Medicare Part D enrollees could face increased prescription drug costs.
Moreover, repealing the IRA would end its Medicare drug price negotiation provision. The provision has initiated negotiations with pharmaceutical companies, potentially lowering prices and saving costs for enrollees.
The Center for American Progress states, “Project 2025 treats seniors’ access to affordable drugs as collateral damage. It prioritizes Big Pharma’s bottom line over the needs of millions of Medicare Part D enrollees who may have to pay more out-of-pocket for their medications, impeding both access and affordability.”
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