The demand for healthcare plans like Medicare and Medigap is at an all-time high. The plans currently have nearly 2.1 million beneficiaries, but some shortcomings exist.
Fortunately, with the implementation of the Inflation Reduction Act in 2022, there’s more potential for seniors looking for affordable healthcare services. The Reduction Act has provided seniors with added benefits for their healthcare coverage.
Inflation Reduction Act of 2022: Expectations for 2023
The Inflation Reduction Act (IRA) is a legislative ordinance introduced to cater general public amidst growing inflation rates.
The act primarily covers reinstated and the latest tax laws affecting individuals and businesses. These include deductions and credits of various types. Even a single provision transforms the rules for eligibility for various aspects, including vehicles, costs, and senior healthcare.
IRA for Drug Costs
The Inflation Reduction Act of 2022, accepted and signed by President Joe Biden, has several provisions to reduce prescription drug costs for Medicare plan owners and facilitate them in every way possible. It will also help with federal government spending on senior healthcare.
The provisions have received strong public support as the high cost of prescription drugs impacts millions of seniors. It is high time for the government to address the increasing drug price situation. According to the CBO, with the implementation of the IRA, the federal deficit will drop down to $237 billion in a decade, i.e.2031)
The provisions for prescription drugs added to the IRA include the following changes you should know about.
- The federal government is liable to negotiate the cost of certain prescription drugs under Medicare Part B and Part D till the beginning of 2026. It can be a huge skipping stone in improving drug costs.
- All drug companies that provide medications under the Medicare plan have to provide rebates to the owners of Medicare plans in case the prices increase quicker compared to the drugs used by Medicare beneficiaries in 2023.
- Since insulin is a basic requirement for most seniors, its cost-sharing should be limited to $35 in 2023 for individuals with a dedicated Medicare plan.
- Trump Administration’s Drug Rebate Rule should be further detailed until further notice, set to begin in 2028 earlier.
- The IRA also demands an expansion on the eligibility for full benefits for individuals with Medicare Plan D. It also includes the Low-Income Subsidy Program, which is set to begin in 2024.
- The plan also requires cutting down the sharing of costs on various adult vaccines falling under Medicare Part D and providing better adult vaccine access for individuals with Medicaid and CHIP from 2023.
- An out-of-pocket cost for Medicare Part D enrollees needs to be caped while providing several other benefits from 2024.
Bottom Line
The provisions added to the Medicare plan via the Inflation Reduction Act of 2022 can be a major step towards providing sustainable and dependable healthcare to seniors in the U.S. Since the provision is already implemented, millions of seniors benefit from it.
