Legislative Update for Medicare

The biggest change to costs for Medicare Beneficiaries is that prescription drug costs have dropped in 2024 for people on Medicare.   The lower costs are the result of the Inflation Reduction Act (IRA) signed into law in 2023 and being implemented over the next 5 years.  

Here are some of the highlights from that legislation:  

• Requires the federal government to negotiate the price of some prescription drugs– starting with 10 drugs in 2024 that will take effect in 2026. 

• Caps Insulin Costs for insulin to  $35 per month for Medicare Beneficiaries. 

• Medicare Part D Out-of-Pocket Cap: eliminates the 5% coinsurance requirement for catastrophic coverage and places an annual limit on out-of-pocket prescription drug costs of $2000 starting in 2025. 

• Rebates from Pharmaceutical Manufacturers; Requires drug companies to pay rebates to Medicare if they raise prices faster than inflation.  

• Medicare Negotiation Power was granted to the CMS to negotiate directly with pharmaceutical companies to lower Medicare drug costs.  

If you have any additional questions, contact our team today!