A senior official with the Joe Biden the administration predicted on Thursday that over the coming year, an additional 543,000 people will qualify for Obamacare policies, coverage costs for the 2 million+ policyholders on the Federal Health Insurance Exchange will remain stable, and Medicare beneficiaries will be reached diabetes will pay lower costs.
This comes after the Inflation Reduction Actargued the Secretary of the Department of Health and Human Services (HHS) Xavier Becerra. Becerra supported in a press release that the new law delivers to the president Biden promise to cut health care and continue to improve the Affordable Care Act, commonly known as Obamacare.
“The IRA is one of the most consequential pieces of legislation in our lifetimes and I say this after being in Congress helping to draft and pass the Affordable Care Act and being the Attorney General defending the law in the Supreme Court. “, Becerra said of the new right.
One of the most heralded provisions of the law allows Medicare in 2026 to begin trading the 10 most expensive drugs taken at home and on the market for at least nine years without competition. In 2027, Medicare can negotiate the costs of 15 more drugs and eventually allows the government to increase the number of drugs it can negotiate by 20 annually.
But there are other provisions in the Inflation Reduction Act regarding pharmaceutical costs that come into effect earlier.
In 2023, the bill limits co-payments for insulin to a maximum of $35 per month in Medicare Part D, the prescription drug benefit covered by Medicare. About 232,000 Florida Medicare beneficiaries used insulin in 2020, state-specific information released by the Department of Health and Human Services following Becerra’s press availability.
The Inflation Reduction Act also ends co-payments on vaccines covered by Part D in 2023. Approximately 281,000 Florida Medicare beneficiaries received a Part D vaccine in 2020.
About 3.6 million Florida residents have enrolled in Medicare Part D and in 2024 premium increases for them will be capped at 6% per year.
And in 2025, out-of-pocket drug costs for Medicare Part D will be capped at $2,000. HHS reports 113,400 Florida Medicare beneficiaries whose out-of-pocket expenses would exceed the $2,000 cap.
According to the federal government, about 2.7 million people enrolled in the Federal Health Insurance Exchange would have seen their premiums increase by an average of $590 per year when lower premiums were made available in the US rescue plan expired at the end of the year.
But the Inflation Reduction Act to ensure that premium costs do not exceed 8.5% of income. The Congressional Budget Office projected it would cost an additional $64 billion to keep the expanded subsidies in place through 2025.
The federal government says the expanded grants help Florida’s small business owners and self-employed people the most. According US Treasury data, there are 477,000 small business owners and independent adults registered on the exchange. They represent 26% of the working-age population registered on the exchange.
Biden signed the Cut Inflation Act into law this week. In addition to cutting health care costs, the legislation aims to tackle climate change and raise corporate taxes just weeks before the midterm elections. It passed by a partisan vote, with support from Democrats.
In a statement, AARP chief executive Jo Ann Jenkins reacted to the vote:
“Today is a momentous day for older Americans. By passing the Cut Inflation Act, Congress delivered on decades of promises to lower the price of prescription drugs. Older adults should never have to choose between paying for the drugs they need or other necessities like food or rent, and tens of millions of adults on Medicare drug plans will soon have peace of mind knowing that their personal expenses are limited each year,” Jenkins said.
“A lot of people said it couldn’t be done, but AARP isn’t afraid of a hard fight. We kept up the pressure and now, for the first time, Medicare will be able to negotiate lower prices with pharmaceutical companies, saving seniors money on their medications. I thank the members of the House whose votes today will bring real relief to millions of Americans, and I look forward to President Biden signing this bill into law.
AARP Florida thanked the US representatives. Catherine Beaver, Sheila Cherfilus McCormick, charlie christ, Val Demings, Ted Deutsch, Lois Frankel, Al Lawson, Stephanie Murphy, Darren Soto, Debbie Wasserman Schultz and Frederique Wilson to support the legislation.