In August of 2022, the Federal Government passed the Inflation Reduction Act bill which included numerous provisions related to Medicare drug pricing.
One of the provisions in this Bill will allow HHS (Health and Human Services) to negotiate drug pricing for the Medicare program. The first 10 drugs were just selected for negotiation and they are listed below. The negotiation will take several years and the new pricing will take effect in 2026.
These are all high-cost drugs that we see each year during our Part D review and recommendations so we are looking forward to the lower prices going forward.
However, the impact this will have on the Medicare beneficiary will likely be minimal because of the other changes coming to the Medicare Part D program. Specifically, there will be a cap on Part D out of Pocket expenses of approximately $3,500 in 2024 and $2,000 in 2025. So, the Medicare Beneficiary who is taking these expensive medications in 2026 will likely reach their Maximum out of Pocket expense (with or without the drug price negotiation). We shall see how this all pans out over the next few years.
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