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Seniors to Save Big on Key Meds Next Year
18 Dec
Summary
- Medicare drug prices will be reduced for 15 widely used medications.
- This change is expected to save Medicare enrollees an average of $129 each.
- The Inflation Reduction Act enabled Medicare to negotiate drug prices for the first time.
Next year, Medicare beneficiaries will see reduced prices on 15 commonly prescribed drugs, including medications for weight loss and breast cancer. This move, spearheaded by the Centers for Medicare & Medicaid Services (CMS), is a result of the Inflation Reduction Act, which granted Medicare the authority to negotiate drug prices for the first time. These negotiated discounts, ranging from 38% to 85%, are expected to significantly lower out-of-pocket expenses for seniors.
CMS estimates that these price reductions will save Medicare Part D enrollees approximately $685 million in total. With 5.3 million individuals anticipated to benefit from these lower prices, the average saving per enrollee is projected to be around $129. Experts note that while Medicare recipients have an out-of-pocket cap, these savings can still be substantial, particularly for those who rely heavily on specific medications.
The Inflation Reduction Act also established an out-of-pocket cap for prescription drugs, set at $2,000 for seniors in 2025, with potential adjustments in subsequent years. This policy is designed to provide greater financial predictability for beneficiaries. The negotiation targets high-expenditure drugs, compelling manufacturers to accept lower prices for continued market access, ultimately benefiting patients with lower costs and improved access to life-saving treatments.
