Inflation Reduction Act Brings Changes

inflation reduction act bill

Photo by Gagan Cambow by Pexels

On Aug. 16, 2022, President Joe Biden signed the Inflation Reduction Act. It will bring some major impacts on Medicare in the upcoming years. The announcement is exciting for Medicare beneficiaries that have come about from two years of effort for policy change. Since its inception in the 1960s, Medicare has undergone several changes. The federal program’s ability to adapt and improve over the years is an excellent gauge of its progression. 

The congressional effort to lower prescription drug costs has been made official by signing into law. The Inflation Reduction act calls for negotiating Medicare drug costs and redesigning Medicare drug coverage, among other things. Listed below are some of the key provisions of this bill:

In 2024, the Part D catastrophic coverage costs for Medicare beneficiaries will reduce from 5% to $0.

There will be an annual cap for all out-of-pocket costs starting in 2025, and there will be a $2000 annual cap on out-of-pocket expenses for Part D and Medicare Advantage Prescription drug coverage.

All insulins covered by Medicare will have a cap limit of no more than $35 for a one-month supply beginning in 2023. 

Also, in 2023, Medicare will begin negotiating prices for some of the most expensive prescription medications currently sold to Medicare beneficiaries.

Agents

We hope that this information on the Inflation Reduction Act has been useful to you. To read more about the extended ACA subsidies click here.

Empower Brokerage is dedicated to helping you make informed decisions about your health and finances. Whether it’s through webinar training, one-on-one calls, seminars, or marketing plans, we want you to be successful!

Give us a call at 888-539-1633 or leave a comment below if you have any questions.

Quick links: