Inflation Reduction Act Research Series: Medicare Part D Enrollee Out-of-Pocket Spending: Recent Trends and Projected Impacts of the Inflation Reduction Act

The Inflation Reduction Act (IRA) will make key changes to improve drug affordability for people who have Medicare. IRA Part D drug-related provisions include instituting a $35 out-of-pocket cap on a month’s supply of each covered insulin, eliminating out-of-pocket costs for Advisory Committee on Immunization Practices (ACIP)-recommended adult vaccines under Part D, imposing a maximum out-of-pocket cap of $2,000 starting in 2025, and eliminating the coverage gap phase. In 2025, the IRA Part D drug-related provisions will lead to an estimated $7.4 billion reduction in annual out-of-pocket spending for 18.7 million enrollees (LIS and non-LIS). This translates to about $400 per person among enrollees who have savings in out-of-pocket costs.

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Related Products:

• Insulin Affordability and the Inflation Reduction Act
• Report to Congress on the Affordability of Insulin
• IRA Elimination of Part D Covered Vaccine Cost-Sharing