More details are emerging about the recently approved federal Inflation Reduction Act.
Oregon US Rep. Suzanne Bonamici (OR-01) has released two reports detailing how, under the Act, thousands of people in NW Oregon will soon spend less on health care.
Bonamici said the savings will be in two areas:
- More affordable prescription drugs for Medicare recipients.
- Lower health insurance premiums for people who get their coverage through the ACA marketplace.
“These savings will make a meaningful difference in the lives of families and individuals, easing the pressure of costs that have been too high for too long,” Bonamici said.
Inflation Reduction Act benefits for residents of Oregon’s First Congressional District include:
By extending critical tax credits set to expire this year, the Inflation Reduction Act will help about 21,000 people in the district currently enrolled in subsidized marketplace health insurance coverage through the Affordable Care Act save an average of $1,290 in premiums starting next year.
Thanks to the Inflation Reduction Act, a family in the district with two adults, two children, and a household income of $75,000 could save $2,832 on their premiums next year.
A single-parent household with one adult, one child, and a household income of $30,000 could save $1,260 on their premiums next year.
A household of two adults over the age of 60 with a joint income of $70,000 could save $14,772 on their premiums next year.
Lower Prescription Drug Costs
The Inflation Reduction Act caps Medicare beneficiaries’ annual out-of-pocket costs for prescription drugs covered by Medicare Part D at $2,000 per year starting in 2025. An estimated 4,000 Medicare Part D beneficiaries in the district had out-of-pocket costs above $2,000 in 2020.
For the estimated 6,900 Medicare beneficiaries receiving insulin in the district, the new law will cap monthly copayments for insulin products at $35 per month, saving about $1,300 per person per year depending on the prescription.
The Inflation Reduction Act finally allows the government to negotiate lower drug prices with the pharmaceutical industry. If the Inflation Reduction Act’s drug pricing provisions had been fully in effect in 2020:
- The total cost of prescriptions filled by Medicare beneficiaries in the district could have been about $31 million lower.
- Medicare beneficiaries in the district could have saved about $10 million in reduced premiums and out-of-pocket costs.
The urgent need for these reforms was demonstrated by the Committee on Oversight and Reform’s landmark drug pricing investigation, which revealed how the pharmaceutical industry’s uninhibited pricing practices lead to price gouging and runaway costs for Americans, according to Bonamici.
The report on benefits of the Inflation Reduction Act health coverage provisions for Oregon’s First District residents can be found with this story below.
The report on benefits of the Inflation Reduction Act Medicare drug pricing provisions for Oregon’s First District residents can be found with this story below.