Democrats in Congrats have taken a big step forward toward lowering prescription drug costs for older Americans, reaching a compromise after significant arguing over the issue. This move is part of Biden’s Build Back Better social spending plan, which is still being negotiated.
On Tuesday, it was announced that the agreement would allow Medicare Parts B and D to negotiate pries directly with drug manufacturers on certain drugs and cap out-of-pocket spending for seniors at $2,000 per year, the first of its kind in the program’s history.
Under existing rules, Medicare Part D enrollees pay 5% of their total drug costs after reaching a certain threshold under what is called the “catastrophic” clause of the outpatient prescription drug agreement. It is meant to help patients with overflowing drug bills avoid financial ruin. The statement also hailed a provision in the agreement that caps insulin prices for diabetics at #35 a month.
The 2021 threshold is currently set at $6,500 for out-of-pocket drug costs, a number that activists in the health care space argue is too high and can still be detrimental to low- and middle-income Americans, for whom the program is designed.
This is great news for those on Medicare! Questions on how it will affect you or your coverage? Give us a call today! Our agents are ready and waiting to help!
