Act to Reduce Inflation Aims to Lower Prescription Drug Costs and Health Care Premiums

TL/DR –

The Inflation Reduction Act has been recently passed in the Senate and is awaiting President Biden’s signature. The act aims to benefit millions of Americans by reducing health insurance premiums and prescription drug costs. It includes provisions to allow Medicare to negotiate drug prices and caps on out-of-pocket prescription payments, although some criticize the bill for not addressing insulin costs for those on private insurance.

Impact of the Inflation Reduction Act

The recent Senate passage of the Inflation Reduction Act, thanks to a tie-breaking vote by VP Kamala Harris, has many wondering about other potential benefits as President Joe Biden prepares to sign the legislation.

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Inflation Reduction Act Provisions

Millions of Americans are expected to benefit from the Inflation Reduction Act through reduced health insurance fees and prescription drug costs. The Act includes caps on out-of-pocket prescription payments for Medicare recipients, with a limit of $2,000 annually by 2025.

Furthermore, the legislation permits Medicare to negotiate prescription drug prices, reducing the monopoly that drug manufacturers previously had. However, these changes won’t take effect immediately; the first 10 medications will be negotiated in 2026, with an additional 10 by 2029.

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Additional Benefits of the Inflation Reduction Act

Besides reduced prescription drug costs, around 13 million Americans will see decreased monthly health insurance premiums. Those covered under the Affordable Care Act could save an average of $800 annually.

Inflation Reduction Act Seeks to Improve Prescription Drug Prices, Reduce Health Care Premiums

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