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Tuesday, September 3, 2024

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AZ judge blocks polling place rules, election official predicts chaos; Netanyahu pushes back against new pressure over Gaza and hostages; New ASU program to help tribal governments develop digital sovereignty; Report: New prescription drug cap for Medicare means big savings.

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Fallen Sergeant's family confronts VP Harris. Utah pushes to toss maps; Johnson supports Ohio redistricting. Arizona braces for election deniers, and Virginia workers fear 'Project 2025.'

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Alaska's 'canary of the sea' is struggling with a deteriorating whale environment, those in rural as opposed to urban areas are more likely to think raw milk is safe to drink, and climate change increases malnutrition in America's low-income counties.

Report: New prescription drug cap for Medicare means big savings

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Tuesday, September 3, 2024   

Hundreds of thousands of older Californians will see huge savings on prescription drugs starting in January, according to a new report from AARP.

The Biden administration's Inflation Reduction Act caps prescription drug costs at $2,000 per year for people on Medicare, starting in 2025.

Nina Weiler-Harwell, associate director of advocacy and community engagement for AARP California, said an estimated 271,000 people in the Golden State will hit the out-of-pocket maximum next year.

"Medicare drug plan enrollees nationwide who reach the new out-of-pocket cap will see an average savings of roughly $1,500," said Weiler-Harwell, "or 56% in 2025 for new prescription drugs."

On average, 40% of people on Medicare who reach the cap will save at $1,000 a year. And 12% will see savings of more than $3,000.

Every year from 2025 to 2029, between 3 and 4 million Part D plan enrollees are estimated to benefit from the new out-of-pocket cap.

Weiler-Harwell said the Inflation Reduction Act introduced a number of new policies to cut costs for Americans on Medicare.

"Copays for insulin capped at $35 a month," said Weiler-Harwell. "Vaccines such as shingles and pneumonia are free. The Inflation Reduction Act did allow Medicare to negotiate the price of high-cost prescription drugs. But we won't really start to see that until 2026."

Also thanks to the IRA, drug companies will have to pay a penalty if they raise their prices higher than inflation.



Disclosure: AARP California contributes to our fund for reporting on Health Issues, Senior Issues. If you would like to help support news in the public interest, click here.


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