Mobile menu Open
Mobile menu close
Home    News & Publications    Some Medicare Changes From The Inflation Reduction Act

Some Medicare Changes From The Inflation Reduction Act

September 22, 2022

We all know prices for drugs continue to increase. The new legislation offers some relief under Part D – Prescription Drugs.

  • Maximum out of pocket will be $2,000 for drugs starting in 2025
  • Insulin: monthly cap of $35 per month for co-pays
  • Penalties in the form of rebates to the government should drugmakers increase prices higher than general inflation
  • Government will start negotiating for better pricing beginning in 2026. It is phased in starting with the 10 most expensive drugs; expanding to the next 20, etc. As an aside, Medicaid and the Department of Veterans Affairs already negotiate drug prices.
  • Expanded eligibility for the Low-Income Subsidy program aka Extra Help.

Based on an article by Mark Miller, Remaking Retirement, Morningstar

IN THE MEDIA

Financial Connections makes its staff available to journalists to share knowledge.

READ MORE

ABOUT FEE-ONLY SERVICES

No Hidden Costs. No Referral Fees. No Commissions.

As a fiduciary, we put our clients' interests first. Our compensation comes exclusively from you. If we don't directly provide a particular service, we can serve as a resource for referrals to other professionals.

Download the fee schedule Download Disclosure Form ADV Parts 2 & 3