Seniors Will Save Thousands on Their Drug Costs Thanks to the Inflation Reduction Act
Washington, D.C. — Protect Our Care is releasing a calculator to help seniors estimate how much money they may save on their prescription drugs thanks to the Inflation Reduction Act. The calculator includes the law’s reforms that cap out-of-pocket drug costs, cap monthly insulin costs at $35, and provide no-cost vaccinations. The calculator also estimates the total savings for Medicare enrollees in every state, including on the first ten drugs with lower prices negotiated by Medicare.
Millions of seniors across the country are benefitting from the Inflation Reduction Act’s prescription drug savings measures. Between capping insulin costs and stopping big drug companies’ egregious price hikes, the new legislation is already working for the American people. Medicare finally has the power to negotiate lower drug prices, which will soon go into effect. And for the first time ever, seniors’ annual out-of-pocket drug costs are capped. Together, these provisions will save nearly 19 million seniors an average of $400 per year on prescription drug costs, with many saving thousands of dollars.
Polling shows that the health care measures in the Inflation Reduction Act are overwhelmingly popular among Americans, with over 80 percent of Americans supporting the provision that allowed Medicare to negotiate drug prices. However, every Republican in Congress voted against the Inflation Reduction Act, and Republicans have now introduced legislation to repeal it. Donald Trump has also called for repeal of the entire Inflation Reduction Act, which would hike costs for seniors on Medicare. At the same time, big drug companies have spent millions of dollars on lobbying and filing meritless lawsuits to block the Negotiation Program from lowering drug prices.
“The Inflation Reduction Act is making a difference, dramatically lowering the cost of drugs for millions of seniors,” said Protect Our Care Chair Leslie Dach. “The Protect Our Care ‘Drug Savings Calculator’ will let seniors see the savings they can expect based on their own use of prescription drugs. The reality is that President Biden and Democrats in Congress have delivered lower health care and prescription drug costs. Democrats are bringing down costs for working families, giving people economic relief and more breathing room to pay their bills. Republicans in Congress and Donald Trump are fighting to repeal these savings and raise costs on seniors across the nation.”
“The Inflation Reduction Act is saving people with Medicare money every day on their prescription drugs. For example, all beneficiaries will pay nothing when they receive a recommended vaccine,” said Richard Fiesta, Executive Director of the Alliance for Retired Americas. “The calculator is a good way for people to see what other savings might be available to them.”
Background
- Over 49 million Medicare Part D beneficiaries have out-of-pocket costs for prescription drugs capped at approximately $3,300 per year in 2024. This increases to $2,000 per year beginning in 2025.
- Nearly 300,000 low-income seniors who are currently enrolled in Extra Help and up to 3 million more who are eligible are receiving more help affording prescription drugs through the Medicare Part D Low-Income Subsidy Program.
- Over 49 million Medicare Part D beneficiaries are protected from Big Pharma’s outrageous price hikes that exceed inflation.
- Over 3.2 million Medicare Parts B and D beneficiaries have the cost of insulin capped at $35 each month, saving seniors hundreds of dollars on this lifesaving medicine.
- Over 49 million Medicare beneficiaries will continue to have access to no-cost vaccines, such as shingles and pneumonia.
- Negotiations have started to lower prices starting in 2025 for the first 10 drugs selected, with more drugs to be named each year. The first ten drugs are Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and Fiasp/NovoLog.