Last August, the Biden Administration passed the Inflation Reduction Act (IRA), a wide-reaching piece of legislation that ushered in sweeping changes to everything from climate and industrial policy to healthcare. The Inflation Reduction Act introduced a number of policies lowering healthcare costs and expanding access. As the law has begun to take effect over the past year, how has the IRA has improved healthcare for Americans?
Lieutenant Governor Antonio Delgado speaks at Protect Our Care tour in Kingston, N.Y. stop to tout efforts to lower health costs on Tuesday, August 1, 2023
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Americans have had to absorb higher health insurance premiums at a time of high inflation. Thankfully, the American Rescue Plan extended federal subsidies to families who purchase coverage under the Affordable Care Act insurance plans. Those savings were set to expire in 2022, but thanks to the Inflation Reduction Act, that didn’t happen. The Inflation Reduction Act:
Roughly 50 million Americans are covered by Medicare Part D, a program that helps cover the costs of prescription drugs for seniors and disabled people. Many with coverage are on fixed incomes and are extremely sensitive to price fluctuations brought about by inflation. Here’s how the Inflation Reduction Act benefits them:
The low income subsidy program (LIBS), which helps people with Medicare pay for prescription drugs, will be extended starting in 2024
Life-saving medications are often far out of reach for many Americans, and their costs have long been a source of despair amongst many. To combat this, the Inflation Reduction Act law will allow Medicare to negotiate directly with drugmakers to reduce costs of lifesaving treatments. Beginning on September 1, 2023 Medicare will announce their top 10 drug targets for negotiation, which is expected to include many of the most popular treatments such as brand name blood thinners, diabetes, and cancer medications. The Congressional Budget Office estimates Medicare negotiation will result in a 50% reduction in net prices for negotiated drugs.
Health care advocate Deborah Scarborough speaks at Protect Our Care tour to tout efforts of lower health costs stops in Kingston, N.Y. Tuesday, August 1, 2023. The event was held a the Academy Green in Kingston. (Tania Barricklo/Daily Freeman)
In addition to all of the changes already in process, the Inflation Reduction Act will also bring on future benefits to Medicare including:
As The White House continues to work towards driving down inflation, controlling healthcare related costs will be critical. One year in, the healthcare benefits of the Inflation Reduction Act are just starting to take effect with some immediate benefits to seniors and families. To learn more about what comes next, including further drug price negotiations extended vaccine coverage and benefits to low-income enrollees check out this implementation timeline.