Inflation Reduction Act becomes law: How it will affect your health care
The Inflation Reduction Act, now signed into law, aims to cut drug costs by capping Medicare out-of-pocket costs and allowing Medicare to negotiate drug prices.
The Inflation Reduction Act, signed into law by President Joe Biden, is set to lower the cost of prescription drugs — including cancer medications, blood thinners and insulin — for millions of Americans, experts say.
Exorbitant drug prices in the United States are a key reason many people in the U.S. are forced to skip or delay filling their needed prescriptions. A Kaiser Family Foundation poll published last month found that nearly 1 in 2 adults report difficulty affording their health care expenses, including their prescribed medications.
President Biden signs Inflation Reduction Act into lawAug. 17, 202200:25Under the new law, the U.S. government is now able to negotiate prices on the costliest prescription drugs, cap costs at $2,000 per year for people on Medicare, limit the monthly cost of insulin to $35 for seniors, and extend subsidies for people buying their own health coverage through the Affordable Care Act, also known as Obamacare. The law also provides free vaccines for seniors.
The changes are “significant,” especially for anyone in need of high-cost drugs, said Stacie Dusetzina, a health policy professor at Vanderbilt University Medical Center.
People on Medicare are expected to benefit the most from the new law, though health experts say some of the changes could eventually find their way into the commercial insurance market.
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