Inflation Reduction Act

Earlier this year, President Biden signed a new law into effect that could help thousands of Georgia Medicare beneficiaries. Its called the Inflation Reduction Act. This law contains policies that cover issues like climate change, taxes, and health care. In the health care industry in features new drug spending rules for Medicare. This will impact the 1.8 million people that are currently insured by Medicare in the state of Georgia.

The changes related to Medicare will roll out next year and continue to impact through 2030. There are quite a few policies that are a part of Medicare and this law will impart the Part D prescription drug benefit program of Medicare. Out of pocket drug costs will be capped at $2000 annually and the 5% co-pay that has been applied to drug prices will go away. Starting next year, a new cap of $35 per month on the cost of insulin will be put into effect. Insulin is the only drug that was specifically named in the legislation to receive its own price cap. 

Medicare can negotiate with drug makers on the prices that they charge on a few costly drugs and that could save billions of dollars for Medicare patients as well as the federal government.