Source: Up North News
Recent developments in U.S. health policy have significantly impacted Medicare beneficiaries, particularly seniors. Under President Biden’s Inflation Reduction Act (IRA), reductions in prescription drug costs have been realized, with further savings anticipated. However, pending political changes could reverse these benefits.
Current Savings for Medicare Beneficiaries
The Inflation Reduction Act has introduced several key measures to lower drug expenses for seniors enrolled in Medicare Part D, which covers prescription medications. A notable change is the $35 monthly cap on insulin, which took effect last year. This measure alone has resulted in average savings of $628 annually for nearly 32,000 seniors in Wisconsin who rely on insulin.
Additionally, the IRA has made vaccines free for Medicare Part D enrollees and enabled them to distribute their annual out-of-pocket expenses over the year. This change helps seniors better manage their healthcare costs. The legislation also expanded federal subsidies to assist low-income seniors, offering an estimated $5,900 in annual support, as stated by the Social Security Administration.
Looking ahead to 2025, the IRA plans to introduce a $2,000 annual cap on out-of-pocket prescription drug costs for Medicare beneficiaries. This cap is expected to save seniors requiring costly medications, such as those for cancer treatment, thousands of dollars annually.
Potential Impact of Project 2025
Despite these beneficial changes, Project 2025—a comprehensive plan proposed by the Heritage Foundation in alignment with former President Donald Trump—aims to repeal the Inflation Reduction Act. This repeal could lead to increased out-of-pocket costs for approximately 18.5 million Medicare enrollees.
For instance, in Wisconsin, about 31,000 Medicare Part D enrollees might face higher prescription costs without the IRA’s $2,000 out-of-pocket cap. Moreover, nearly 300,000 seniors in the state could see an average annual increase of $475 in their medication expenses if the IRA’s provisions are eliminated.
The proposed repeal would also terminate Medicare’s authority to negotiate drug prices with pharmaceutical companies, a provision that began earlier this year. These negotiations are designed to lower costs for high-priced drugs, potentially leading to significant savings for Medicare enrollees.
The Center for American Progress has criticized Project 2025, stating, “Project 2025 treats seniors’ access to affordable drugs as collateral damage. This dangerous agenda prioritizes Big Pharma’s bottom line at the expense of millions of Medicare Part D enrollees who, if Project 2025 is enacted, may once again have to pay more out-of-pocket for the medications they need, impeding both access and affordability.”
For further details, read the original article at Up North News.
