Article Summary –
The US Department of Health and Human Services announced that 41 prescription drugs available through Medicare Part B will cost less due to the Inflation Reduction Act signed by President Biden in 2022. The law requires drug companies to pay into the Medicare Supplementary Medical Insurance Fund if they raise their prices higher than the standard rate of inflation. The fund helps cover the cost of Medicare Part B and D coverage, including prescription drug benefits, and the law aims to lower out-of-pocket cost for families, with possible fines for companies not paying the rebate amount.
Reduced Prices for 41 Prescription Drugs Announced by Health Department
The Department of Health and Human Services revealed on March 26, a decrease in prices for 41 prescription drugs under Medicare Part B. This applies if their manufacturers hike prices beyond the inflation rate. Around 763,700 annual Medicare users will benefit from this change.
“The lower cost prescription drug law from President Biden is reducing prescription drug costs for Medicare users. We’re returning money to older Americans and disabled people,” stated Secretary Xavier Becerra.
The price cuts are a response to the 2022 Inflation Reduction Act signed by President Biden. This law mandates drug companies to contribute to the Medicare Supplementary Medical Insurance Fund if their product prices exceed the standard inflation rate. The firms must pay any excess over government-determined charges. This fund helps pay for Medicare Part B and D coverage, including prescription drug benefits.
In Wisconsin, more than 1.2 million people have Medicare coverage. A 2019 Wisconsin poll showed high concern over future prescription drug costs, with 59% urging government action to cut healthcare costs.
The Inflation Reduction Act passed with only Democrat votes, despite unanimous opposition from Republicans. Vice President Kamala Harris cast the tiebreaking vote in the Senate.
The Biden administration criticized the fiscal 2025 budget proposal from the House Republican Study Committee, which proposed cutting health care costs. The plan suggests ending Affordable Care Act subsidies and converting Medicaid into a state-managed block grant program.
The White House estimated that these proposals could cause over 45 million people to lose healthcare coverage and cut over $4.5 trillion from healthcare program funding.
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