Dear Neighbor,
For far too long, too many Americans have been forced to choose between paying for health care—including lifesaving medication and insurance coverage—and putting food on the table. With the Inflation Reduction Act now the law of the land, Democrats in Congress have worked with President Biden to taken bold steps to rein in out-of-control health care costs.
Families across Virginia's 11th District will soon see more affordable prescription drugs for Medicare recipients and lower health insurance premiums made possible by the Inflation Reduction Act. Here's how:
Affordable Health Care
- By extending critical tax credits that are set to expire this year, the Inflation Reduction Act will help 34,000 people in the district currently enrolled in subsidized marketplace health insurance coverage through the Affordable Care Act save an average of $950 in premiums starting next year.
- Thanks to the Inflation Reduction Act, a family in the district with two adults, two children, and a household income of $75,000 could save $2,832 on their premiums next year.
- A single-parent household with one adult, one child, and a household income of $30,000 could save $1,260 on their premiums next year.
- A household of two adults over the age of 60 with a joint income of $70,000 could save $16,176 on their premiums next year.
Lower Prescription Drug Costs
- The Inflation Reduction Act caps Medicare beneficiaries’ annual out-of-pocket costs for prescription drugs covered by Medicare Part D at $2,000 per year starting in 2025. An estimated 3,000 Medicare Part D beneficiaries in the district had out-of-pocket costs above $2,000 in 2020.
- For the estimated 3,000 Medicare beneficiaries receiving insulin in the district, the new law will cap monthly copayments for insulin products at $35 per month.
- The Inflation Reduction Act finally allows the government to negotiate lower drug prices with Big Pharma. If the Inflation Reduction Act’s drug pricing provisions had been fully in effect in 2020:
- The total cost of prescriptions filled by Medicare beneficiaries in the district could have been $21 million lower.
- Medicare beneficiaries in the district could have saved a total of $6 million in reduced premiums and out-of-pocket costs.
