Seniors and hardworking families are paying too much for prescription drugs – more than any other country in the world – and it’s forcing them to choose between their medication and food for their families. But, that’s changing.
Medicare plans for 2024 will include new benefits and lower costs for seniors because of President Biden’s Inflation Reduction Act, including free vaccinations for illnesses like shingles and the flu, a $35 monthly cap on insulin costs, protections from outrageous price hikes, and a new annual cap of approximately $3,300 on out-of-pocket expenses for drugs.
Starting in 2025, Medicare beneficiaries will also see lower drug costs across the board thanks to the Inflation Reduction Act’s new $2,000 annual out-of-pocket cap on drug costs. Soon, seniors will save even more thanks to Medicare negotiation.
- 49 million Medicare Part D beneficiaries will have out-of-pocket costs for prescription drugs capped at approximately $3,300 per year in 2024 and $2,000 per year beginning in 2025. More than 1.4 million Medicare enrollees paid more than $2,000 in out-of-pocket costs in 2020.
- 3.5 million seniors struggle to afford their medication, forcing them to skip or ration doses.
- In 2024, 400,000 low-income seniors will receive more help affording prescription drugs through the Medicare Part D Low-Income Subsidy Program.
- In 2025, nearly 19 million Medicare enrollees will save an average of about $400 per year on out-of-pocket prescription drug costs. Enrollees with the highest drug costs will save an average of $2,500 per year.
Capping Out-Of-Pocket Spending For Seniors. Seniors with serious conditions like cancer, multiple sclerosis, and rheumatoid arthritis will save thousands of dollars on prescriptions under the Inflation Reduction Act. More than 1.4 million Medicare enrollees paid more than $2,000 in out-of-pocket costs in 2020. The Inflation Reduction Act also allows out-of-pocket spending to be smoothed over the course of the year beginning in 2025, so patients are not forced to pay the entirety of their out-of-pocket cost all at one time.
Helping Millions Of Seniors Who Can’t Afford Their Prescriptions. The Inflation Reduction Act will help 3.5 million older Americans who have trouble affording their medication. Over the decade from 2009 to 2019, out-of-pocket spending for older Amerians rose by 41 percent. Seniors often have to sacrifice basic needs such as food or clothing to be able to afford their prescriptions due to rising costs.
Republicans Voted Against Lower Drug Prices For Millions of Americans. Every Republican in Congress voted against the Inflation Reduction Act effectively taking money out of the pockets of seniors and putting it in Big Pharma’s. Since its passage, Republicans in Congress have repeatedly introduced legislation to repeal the Inflation Reduction Act’s health care provisions, which would increase health care costs for millions. If the history of efforts to repeal the Affordable Care Act is any indication, the Republican party will continue to attempt to block life-saving programs, preventing Americans from getting quality and affordable health care.