Post from September 16, 2022

WASHINGTON - Congressman Jim Costa (CA-16) announced that families in the 16th Congressional District of California will soon see more affordable prescription drugs for Medicare recipients and lower health insurance premiums made possible by the Inflation Reduction Act, which Costa voted for last month. “For far too long, many Americans had to pick between paying for life-saving medication and putting food on the table. No American should have to put their health and life at risk because of financial burdens,” said Costa. “I am proud to share that the Inflation Reduction Act will slash health care costs and ensure seniors and those with disabilities across my district can afford the medications they need to survive.” The Inflation Reduction Act healthcare benefits for Valley residents of California’s 16th Congressional District include: Affordable Health Care

• By extending critical tax credits set to expire this year, the Inflation Reduction Act will help 24,792 people in the district currently enrolled in subsidized marketplace health insurance coverage through the Affordable Care Act save an average of $895 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 $13,908 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 1,000 Medicare Part D beneficiaries in the district had out-of-pocket costs above $2,000 in 2020. 

• For the estimated 5,700 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 $17 million lower.

  • Medicare beneficiaries in the district could have saved a total of $5 million in reduced premiums and out-of-pocket costs.

The urgent need for these reforms was demonstrated by Committee on Oversight and Reform’s landmark drug pricing investigation, which revealed how the pharmaceutical industry’s uninhibited pricing practices lead to price gouging and runaway costs for Americans.

The report on the benefits of the Inflation Reduction Act health coverage provisions for 16th District residents can be found here.

The report on the benefits of the Inflation Reduction Act Medicare drug pricing provisions for 16th District residents can be found here.

Original source can be found here.