Points
- The Inflation Reduction Act of 2022 was recently signed into law, bringing with it several reforms to drug pricing.
- Among the targets of the novel act is increased advantages with Medicare concerning drug prices.
- The act limits the out-of-pocket costs for drugs for seniors to around US$ 2000.00 a year, and insulin to around US$ 35.00 a month.
Summary
U.S. President Joe Biden recently signed the Inflation Reduction Act of 2022, which sets out to mitigate the risks and pitfalls associated with the general inflation trend experienced by the country’s economy.
Among the targets of this novel act, alongside reforms in the form of climate and tax provisions, is Medicare; specifically, the act allows Medicare to position itself more advantageously with prescription drug prices. This stands alongside currently-existing subsidies installed in place by the previous Affordable Care Act, which now see its services extended all the way to 2025.
The recent legislative changes also effectively limit the costs seniors will have to bear for their drugs to around US$ 2000.00 a year, starting in 2025. The act also limits insulin prices for seniors to around US$ 35.00 per month as a price cap. These examples join other reforms in the act, making it one of the most substantial reforms to drug pricing ever passed at the federal level for close to two decades.
Link to the article: https://www.acc.org/Latest-in-Cardiology/Articles/2022/08/18/18/14/Inflation-Reduction-Act-Reforms-Medicare-Prescription-Drug-Pricing-More
References Inflation reduction act reforms medicare prescription drug pricing, more. (n.d.). American College of Cardiology. Retrieved 31 August 2022, from https://www.acc.org/Latest-in-Cardiology/Articles/2022/08/18/18/14/Inflation-Reduction-Act-Reforms-Medicare-Prescription-Drug-Pricing-More Ivanova, I. (2022, August 16). Inflation Reduction Act could be ‘game-changing’ for millions of U.S. seniors. CBS News. https://www.cbsnews.com/news/inflation-reduction-act-drug-costs-medicare-seniors-cbs-news-explains/
