
Prescription pills are shown with $20 bills. (Photo: www.ccPixs.com/Flickr/cc)
To donate by check, phone, or other method, see our More Ways to Give page.
Prescription pills are shown with $20 bills. (Photo: www.ccPixs.com/Flickr/cc)
The Inflation Reduction Act, which the Senate has passed and the House is set to consider later this week, will reduce the cost of prescription drugs that are covered by Medicare, thereby saving money for both the Medicare program and its beneficiaries, and improve Medicare drug benefits. Contrary to some claims, the bill will not cut Medicare benefits or take money away from Medicare.
To the contrary, the bill will improve Medicare drug benefits by limiting the total amount of cost sharing that a beneficiary will be required to pay in any year.
The bill will reduce Medicare's drug costs in several ways. It will require the federal government to negotiate with manufacturers to obtain lower prices for some high-cost drugs, require drug companies to pay rebates to Medicare if their prices rise faster than overall inflation, and repeal a Trump Administration rule on drug rebates. The bill will also improve Medicare's drug benefit by placing a $2,000 annual limit on out-of-pocket drug spending, capping out-of-pocket insulin expenses at $35 a month, eliminating cost sharing for vaccines, and expanding eligibility for the low-income drug subsidy. Currently there is no limit on total out-of-pocket or insulin spending. In total, these changes will save the government about $250 billion over ten years and will also lower premiums and cost sharing for Medicare beneficiaries.
Some critics of the legislation have falsely contended that it would cut Medicare benefits and take money away from Medicare. For example, in the Senate debate Senator James Lankford said, "This Inflation Reduction Act takes the savings from this new prescription plan from Medicare and takes it out of Medicare. . . . It literally takes money designed for 76-year-olds on a fixed income and gives them to 26-year-olds and their family." Similar claims have circulated in political advertisements and on social media.
Assertions like this are inaccurate and have been widely debunked by budget analysts and fact-checking organizations. The Inflation Reduction Act will reduce Medicare spending by lowering the prices of some prescription drugs furnished through the program, not by cutting benefits. To the contrary, the bill will improve Medicare drug benefits by limiting the total amount of cost sharing that a beneficiary will be required to pay in any year. By reducing the price of drugs, Medicare will be able to both spend less and provide better benefits to seniors and people with disabilities.
Dear Common Dreams reader, The U.S. is on a fast track to authoritarianism like nothing I've ever seen. Meanwhile, corporate news outlets are utterly capitulating to Trump, twisting their coverage to avoid drawing his ire while lining up to stuff cash in his pockets. That's why I believe that Common Dreams is doing the best and most consequential reporting that we've ever done. Our small but mighty team is a progressive reporting powerhouse, covering the news every day that the corporate media never will. Our mission has always been simple: To inform. To inspire. And to ignite change for the common good. Now here's the key piece that I want all our readers to understand: None of this would be possible without your financial support. That's not just some fundraising cliche. It's the absolute and literal truth. We don't accept corporate advertising and never will. We don't have a paywall because we don't think people should be blocked from critical news based on their ability to pay. Everything we do is funded by the donations of readers like you. The final deadline for our crucial Summer Campaign fundraising drive is just days away, and we’re falling short of our must-hit goal. Will you donate now to help power the nonprofit, independent reporting of Common Dreams? Thank you for being a vital member of our community. Together, we can keep independent journalism alive when it’s needed most. - Craig Brown, Co-founder |
The Inflation Reduction Act, which the Senate has passed and the House is set to consider later this week, will reduce the cost of prescription drugs that are covered by Medicare, thereby saving money for both the Medicare program and its beneficiaries, and improve Medicare drug benefits. Contrary to some claims, the bill will not cut Medicare benefits or take money away from Medicare.
To the contrary, the bill will improve Medicare drug benefits by limiting the total amount of cost sharing that a beneficiary will be required to pay in any year.
The bill will reduce Medicare's drug costs in several ways. It will require the federal government to negotiate with manufacturers to obtain lower prices for some high-cost drugs, require drug companies to pay rebates to Medicare if their prices rise faster than overall inflation, and repeal a Trump Administration rule on drug rebates. The bill will also improve Medicare's drug benefit by placing a $2,000 annual limit on out-of-pocket drug spending, capping out-of-pocket insulin expenses at $35 a month, eliminating cost sharing for vaccines, and expanding eligibility for the low-income drug subsidy. Currently there is no limit on total out-of-pocket or insulin spending. In total, these changes will save the government about $250 billion over ten years and will also lower premiums and cost sharing for Medicare beneficiaries.
Some critics of the legislation have falsely contended that it would cut Medicare benefits and take money away from Medicare. For example, in the Senate debate Senator James Lankford said, "This Inflation Reduction Act takes the savings from this new prescription plan from Medicare and takes it out of Medicare. . . . It literally takes money designed for 76-year-olds on a fixed income and gives them to 26-year-olds and their family." Similar claims have circulated in political advertisements and on social media.
Assertions like this are inaccurate and have been widely debunked by budget analysts and fact-checking organizations. The Inflation Reduction Act will reduce Medicare spending by lowering the prices of some prescription drugs furnished through the program, not by cutting benefits. To the contrary, the bill will improve Medicare drug benefits by limiting the total amount of cost sharing that a beneficiary will be required to pay in any year. By reducing the price of drugs, Medicare will be able to both spend less and provide better benefits to seniors and people with disabilities.
The Inflation Reduction Act, which the Senate has passed and the House is set to consider later this week, will reduce the cost of prescription drugs that are covered by Medicare, thereby saving money for both the Medicare program and its beneficiaries, and improve Medicare drug benefits. Contrary to some claims, the bill will not cut Medicare benefits or take money away from Medicare.
To the contrary, the bill will improve Medicare drug benefits by limiting the total amount of cost sharing that a beneficiary will be required to pay in any year.
The bill will reduce Medicare's drug costs in several ways. It will require the federal government to negotiate with manufacturers to obtain lower prices for some high-cost drugs, require drug companies to pay rebates to Medicare if their prices rise faster than overall inflation, and repeal a Trump Administration rule on drug rebates. The bill will also improve Medicare's drug benefit by placing a $2,000 annual limit on out-of-pocket drug spending, capping out-of-pocket insulin expenses at $35 a month, eliminating cost sharing for vaccines, and expanding eligibility for the low-income drug subsidy. Currently there is no limit on total out-of-pocket or insulin spending. In total, these changes will save the government about $250 billion over ten years and will also lower premiums and cost sharing for Medicare beneficiaries.
Some critics of the legislation have falsely contended that it would cut Medicare benefits and take money away from Medicare. For example, in the Senate debate Senator James Lankford said, "This Inflation Reduction Act takes the savings from this new prescription plan from Medicare and takes it out of Medicare. . . . It literally takes money designed for 76-year-olds on a fixed income and gives them to 26-year-olds and their family." Similar claims have circulated in political advertisements and on social media.
Assertions like this are inaccurate and have been widely debunked by budget analysts and fact-checking organizations. The Inflation Reduction Act will reduce Medicare spending by lowering the prices of some prescription drugs furnished through the program, not by cutting benefits. To the contrary, the bill will improve Medicare drug benefits by limiting the total amount of cost sharing that a beneficiary will be required to pay in any year. By reducing the price of drugs, Medicare will be able to both spend less and provide better benefits to seniors and people with disabilities.