Subscribe to HuffPost’s biweekly politics newsletter by clicking here if you want to comprehend why the Biden administration’s accomplishments are often overlooked, and why they deserve more recognition. A policy announcement from last Friday sheds light on this issue. The announcement revealed a list of 43 prescription drugs covered by Medicare that experienced price increases surpassing the inflation rate. The list includes well-known drugs like Humira, which is used to treat inflammatory conditions, as well as lesser-known medications like Leukine, which helps cancer patients prevent infection during chemotherapy.
In the past, these price hikes would have resulted in higher costs for Medicare and individual seniors. However, thanks to the Inflation Reduction Act (IRA), things have changed. The IRA, a law enacted in August 2022 after a year-long debate between President Biden and the Democratic Congress, is focused on reducing prescription drug costs. It accomplishes this by penalizing drug companies that raise prices faster than inflation. The 43 drugs on the list are all subject to these penalties, meaning that manufacturers will have to reimburse the government, ultimately assisting in funding Medicare expenses.
Seniors will also benefit directly from the IRA. The federal government will decrease the “coinsurance” that seniors owe for each drug on the list, resulting in savings ranging from $1 to $449 per dose, as calculated by the administration.
While the news may not be receiving much attention due to its complicated nature and limited scope, these penalties and reduced coinsurance will have a broader impact over time. More drugs, including those obtained at pharmacies, will be covered by these measures. Additionally, economists predict that future price hikes by drug companies will be less likely as they aim to avoid incurring penalties.
Apart from these provisions, the IRA contains other measures to lower prescription drug costs, such as a cap on insulin prices, the ability to negotiate prices directly with manufacturers, and an overall limit on out-of-pocket drug spending. According to Tricia Neuman, senior vice president of KFF, these measures will result in significant savings for some seniors, reaching thousands of dollars. Neuman expressed surprise at the lack of awareness surrounding these features.
The IRA’s impact extends beyond healthcare. It includes provisions to promote the use of clean energy, particularly through domestically developed products and resources. This was previously covered by my colleague Alexander Kaufman in his January article about the construction of North America’s largest solar manufacturing plant in Georgia. Personally, I have observed similar developments from my home in Michigan, where the auto industry frequently announces the opening or conversion of plants to produce electric vehicles and their components.
However, not everyone is pleased with these advancements. Every provision of the IRA has its critics, including conservatives who argue that price regulation will discourage research investments and dispute the severity of climate change. Even among those supportive of the goals of the legislation, there is some ambivalence. These compromises were necessary to secure passage in a closely divided Congress. While these changes may be incremental, difficult to explain, and obscure, they represent genuine progress in American politics and will make a tangible difference in many people’s lives. It all comes down to who is paying attention.
!function(f,b,e,v,n,t,s){if(f.fbq)return;n=f.fbq=function(){n.callMethod? n.callMethod.apply(n,arguments):n.queue.push(arguments)};if(!f._fbq)f._fbq=n; n.push=n;n.loaded=!0;n.version=’2.0′;n.queue=[];t=b.createElement(e);t.async=!0; t.src=v;s=b.getElementsByTagName(e)[0]; s.parentNode.insertBefore(t,s)}(window,document,’script’,’https://connect.facebook.net/en_US/fbevents.js’); fbq(‘init’, ‘1621685564716533’); fbq(‘track’, “PageView”); var _fbPartnerID = null; if (_fbPartnerID !== null) { fbq(‘init’, _fbPartnerID + ”); fbq(‘track’, “PageView”); }
Denial of responsibility! VigourTimes is an automatic aggregator of Global media. In each content, the hyperlink to the primary source is specified. All trademarks belong to their rightful owners, and all materials to their authors. For any complaint, please reach us at – [email protected]. We will take necessary action within 24 hours.
