HealthDay operates under the strictest editorial standards. Our syndicated news content is completely independent of any financial interests, is based solely on industry-respected sources and the latest scientific research, and is carefully fact-checked by a team of industry experts to ensure accuracy.
- All articles are edited and checked for factual accuracy by our Editorial Team prior to being published.
- Unless otherwise noted, all articles focusing on new research are based on studies published in peer-reviewed journals or issued from independent and respected medical associations, academic groups and governmental organizations.
- Each article includes a link or reference to the original source.
- Any known potential conflicts of interest associated with a study or source are made clear to the reader.
Please see our Editorial and Fact-Checking Policy for more detail.Editorial and Fact-Checking Policy
HealthDay Editorial Commitment
HeathDay is committed to maintaining the highest possible levels of impartial editorial standards in the content that we present on our website. All of our articles are chosen independent of any financial interests. Editors and writers make all efforts to clarify any financial ties behind the studies on which we report.
FRIDAY, Aug. 12, 2022 (HealthDay News) -- The Inflation Reduction Act is expected to bring out-of-pocket drug costs down for many U.S. seniors, but most of its benefits are not immediate.
Under the law, Medicare will now be allowed to negotiate the cost of some drugs. That should eventually bring down out-of-pocket costs for seniors with Medicare Part D prescription drug plans, according to John Clark, a clinical associate professor at the University of Michigan College of Pharmacy. Previously, Medicare was not allowed to negotiate drug prices.
Under the law -- which goes to President Joe Biden after it clears the U.S. House of Representatives -- the number of medications will be phased in, beginning in 2026 with 10 drugs. Beginning next year, drug companies will be required to pay rebates if drug prices rise faster than inflation, which they often do.
Also starting next year, vaccines will be free for Part D recipients. These savings will not be passed on to seniors with private insurance.
In 2024, the 5 percent coinsurance required for Part D catastrophic coverage ends. This is expected to benefit an estimated 3 million Americans. In addition, out-of-pocket drug costs will be capped at $2,000 for Medicare beneficiaries beginning in 2025.
The Congressional Budget Office predicts that the reforms will save the government $288 billion over 10 years. Whether this new law will actually benefit patients is yet to be seen, Clark noted in a university news release, but this is the first intervention in drug prices for Americans who pay more than others in the world for the same drugs. A cap on insulin prices for all Americans was not included in the new law, which some see as a win for drug companies, Clark said.
This story may be outdated. We suggest some alternatives.
The content contained in this article is over two years old. As such our recommendation is that you reference the articles below for the latest updates on this topic. This article has been left on our site as a matter of historic record. Please contact us at email@example.com with any questions.
Updated on September 21, 2022