What’s changing for Medicare?

The IRA strengthens the Affordable Care Act (ACA) — President Obama’s signature legislation receives a boost from his former Vice President.

A key feature of the ACA is that the government provides subsidies to folks who don’t have employer-sponsored health insurance to help them afford insurance from the ACA marketplace. The American Rescue Plan provided a temporary boost to these subsidies, saving the average person buying insurance from the exchange $800 per year.

The IRA invests in Medicare and reduces costs for seniors.

For the first time in history, Medicare will be able to negotiate the costs of some prescription drugs with the Big Pharma companies who manufacture them instead of being forced to pay sky-high prices. This could result in thousands of dollars less in prescription drug costs for some older adults. We’ve watched Big Pharma jack up their prices simply to rake in higher profits — but under the IRA, they will have to give a discount to Medicare for price increases higher than the rate of inflation. That’s huge. Too many people are forced to make impossible financial decisions simply because their prescriptions are too expensive.

  • Place a $2,000 out-of-pocket maximum on Part D, putting a ceiling on the amount of money seniors can be required to pay each year;
  • Cap monthly out-of-pocket costs at just $35 for the Insulin millions of Americans rely on;
  • Guarantee that all vaccines will be totally free.

Big Pharma is Big Mad.

When Medicare Part D was created in 2003 (remember, George W. Bush was president and Republicans controlled both chambers of Congress), it included a huge giveaway to Big Pharma — Medicare was explicitly forbidden from negotiating prices for prescription drugs. This was in spite of Veterans Affairs already doing this for its healthcare program. Pharmaceutical companies basically got the green light to keep raising their prices, forcing seniors to foot the bill.

--

--

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
Indivisible Guide

Indivisible Guide

875 Followers

Indivisible is a locally-led, nationally coordinated movement-building progressive power in every state.