The Federal Government of the United States has just announced a new way to apply the inflation reduction law promoted by the government of Joe Biden, under which a group of Medicare beneficiaries will be able to pay less on hundreds of Part B drugs of the program. this new price reduction clause for prescription drugs is activated if the prices of such drugs increase at a faster rate than inflation.
The U.S. Department of Health and Human Services. USA. (HHS), through the Centers for Medicare and Medicaid Services (CMS), informed the public that some Medicare users will benefit from a reduction in the costs of 64 drugs included in Medicare Part B. This will save millions of dollars for hundreds of thousands of beneficiaries across the country, who depend on the Medicare program to access quality and timely healthcare.
Medicare to Cut Prices of Dozens of Drugs Across the US
Between July 1, 2024 and September 30, 2024, these drugs will have a reduced coinsurance rate due to pharmaceutical companies increasing prices above the inflation rate, in recent months. More than 750,000 Medicare beneficiaries or users, who use these drugs to treat chronic or acute conditions such as osteoporosis, cancer and infections, will benefit and save thousands of dollars on this coverage each year.
White House domestic policy adviser Neera Tanden will announce these savings in a speech on the Biden-Harris Administration’s cost-cutting strategy at the Center for American Progress.
“Without the Inflation Reduction Act, seniors were completely exposed to Big Pharma’s price hikes. Not anymore. Thanks to President Biden and the new Medicare inflation rebate program, seniors are protected and benefiting from lower Part B drug costs,” said White House Domestic Policy Advisor Neera Tanden. “The Biden-Harris Administration will continue fighting to bring down the cost of health care and prescription drugs for all Americans.”
What Does the Inflation Reduction Act Say About Medicare?
“President Biden’s Medicare prescription drug rebate program is putting money back in the pockets of seniors and people with disabilities, said HHS Secretary Xavier Becerra. “President Biden made lowering prescription drug costs for Americans a top priority, and he is delivering on that promise. Our work is not complete, and we will continue to fight for lower health care costs for all Americans.”
Due to the Inflation Reduction Act, which established the Medicare Prescription Drug Inflation Reimbursement Program, some Medicare users could save between $1 and $4,593 per day during this period.
New Law Set to Reduce Healthcare Cost to Low-income Americans
The Medicare Prescription Drug Inflation Reimbursement Program is one of the many measures contemplated in the Inflation Reduction Act to lower drug costs. In addition to this program, the law has expanded eligibility to receive full Low-Income Subsidy benefits (LIS or “Extra Help”) in Medicare Part D since the beginning of this year.
Thanks to this expansion, about 300,000 people with low and modest incomes are already benefiting. In addition, a comprehensive educational campaign is being implemented to reach more than three million people who may be eligible for the program but have not yet enrolled.
Starting January 1, 2024, some Medicare Part D beneficiaries facing high drug costs will have an annual out-of-pocket limit of approximately $3,500. And by 2025, all Medicare Part D beneficiaries will be able to enjoy a $2,000 cap on annual out-of-pocket prescription drug costs.
The Inflation Reduction Act also requires drug companies to reimburse Medicare when the prices of certain drugs rise faster than inflation. CMS plans to start collecting these rebates from pharmaceutical companies no later than the fall of 2025. The funds raised will be deposited into the Federal Supplemental Health Insurance Trust Fund, contributing to the long-term sustainability of the Medicare program for future generations.
