Will The Inflation Reduction Act Reduce Health Care Costs?

According to the published reports by Suzanne Bonamici (OR-01), thousands of people in NW Oregon will soon spend less on healthcare because of the Act.

According to Bonamici, there will be two areas of savings:

  • Pharmaceutical medications are cheaper for Medicare recipients.
  • People who purchase health insurance through the ACA marketplace pay lower premiums.

The pressure of costs that have been too high for too long will be relieved, according to Bonamici, who added that these savings will have a significant impact on the lives of families and individuals.

Benefits of the Inflation Reduction Act for Oregon’s First Congressional District citizens include:

Cost-Effective Healthcare

The Inflation Reduction Act will help roughly 21,000 people in the district who are now enrolled in subsidized marketplace health insurance coverage through the Affordable Care Act save an average of $1,290 in premiums starting next year by extending crucial tax credits slated to expire this year.

A family in the district with two adults, two children, and a household income of $75,000 might save $2,832 on premiums next year as a result of the Inflation Reduction Act.

A single-parent family with one adult, one child, and a $30,000 annual household income might save $1,260 on premiums in the upcoming year.

A household with two persons over 60 and a combined income of $70,000 may save $14,772 on premiums in the upcoming year.

Lower Prices for Prescription Drugs

The Inflation Reduction Act caps the yearly out-of-pocket expenses for Medicare beneficiaries who use prescription medications covered by Medicare Part D at $2,000 starting in 2025. In 2020, the district’s expected 4,000 Medicare Part D users had out-of-pocket expenses that were higher than $2,000.

The Inflation Reduction Act Reduce Health Care Costs
The Inflation Reduction Act Reduces Health Care Costs

The new law will cap monthly copayments for insulin products at $35 per month for the approximately 6,900 Medicare beneficiaries who receive insulin in the district, saving each person, depending on the prescription, nearly $1,300 annually.

The Inflation Reduction Act finally enables the government to bargain with the pharmaceutical industry for reduced medicine pricing. If the drug pricing provisions of the Inflation Reduction Act had been completely implemented in 2020:

Medicare beneficiaries in the district’s total prescription spending may have been around $31 million less.

The district’s Medicare beneficiaries might have saved $10 million by paying lower premiums and out-of-pocket expenses.

The landmark drug pricing investigation conducted by the Committee on Oversight and Reform, which showed how the pharmaceutical industry’s unrestrained pricing practices result in price overcharging and skyrocketing costs for Americans, demonstrated the urgent need for these reforms, according to Bonamici.

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