Source: United States Senator for Maine Angus King
Overview
The Inflation Reduction Act has laid the groundwork for—and in some cases already implemented—long-term changes in federal policy that will keep people healthier and deliver higher quality care at lower cost to patients. Even better, these benefits are delivered while simultaneously reducing the deficit by finally allowing Medicare to negotiating bulk discounts on the price it pays for prescription drugs. This will save taxpayers hundreds-of-billions.
It’s a well named bill. The IRA will provide lasting relief and protection from inflation for years to come, especially with regards to healthcare.
It was a long process to get the bill passed—taking more than a year—but the final product is something to be proud of.
Immediate Impact
- Extend Affordable Care Act premium subsides. The Inflation Reduction Act makes a three year extension of premium subsidies for American’s who receive their healthcare through the Affordable Care Act – more than 100,000 Maine people – Congress extended enhanced premium assistance for ACA marketplace plans through 2025; 80 percent of Maine ACA enrollees saved on insurance, and average savings per enrollee were more than $600 in 2022.
Beginning in 2023
- Provide free vaccines for seniors. The Inflation Reduction Act makes all vaccines free in Medicare for seniors, the only population for which vaccines were not already free.
- Institute a new “inflation rebate” under Medicare. Drug companies should not be allowed to make arbitrary and rapid price increases on products that are not changing year-to-year. The Inflation Reduction Act requires drug companies rebate back the difference to Medicare if they raise prices higher than inflation.
- Limits insulin copays to $35/month. For too long, Maine seniors have faced uncertainty when paying for insulin which could costs hundreds of dollars out of pocket. The Inflation Reduction Act ensures no senior will pay more than $35/month for this life-sustaining medication.
Beginning in 2024
- Caps Medicare Part D Premium Growth. For seniors on fixed incomes, increasing Medicare premiums can be a massive burden; the Inflation Reduction Act, in 2024, will prohibit premiums increasing more than 6% per year.
- Expand premium and co-pay assistance on prescription drugs for low-income individuals. Currently, the low-income subsidy program (LIS) under Medicare Part D is fully available to all seniors earning less than 135% of the federal poverty level, and partially available to seniors earning less than 150% of the federal policy level. The Inflation Reduction Act eliminates the partial subsidy status, giving those seniors the full low-income subsidy under Medicare Part D.
Beginning in 2025
- Cap Medicare patients’ out of pocket costs at $2,000 per year. Today, there is no cap on spending for prescription drugs seniors buy from pharmacies. The Inflation Reduction Act caps Medicare’s out of pocket prescription drug costs at $2,000 a year, ensuring that devastating diagnoses, like cancer, will never again mean paying tens of thousands for just one drug.