Biden’s Inflation Reduction Act Brings Big Medicare Changes in 2024

biden speaking ss - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024

The passage of the Inflation Reduction Act will make an impact on Medicare Part D next year. Beginning in 2024, changes will be felt by the millions of Americans who rely on the healthcare program. These changes are due to the recently passed Inflation Reduction Act. Read on to learn what changes may affect you starting this year.

What is Medicare Part D?

medicare partD ss - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024
Image Credit: Shutterstock.

Since 2006, Medicare Part D is prescription drug coverage. Regardless of income, age, or health status, Medicare participants have access to drug coverage through Part D. With the new changes coming, millions of Americans could potentially be saving money on their prescription drugs. 

What Is the Inflation Reduction Act?

Joe Biden MSN 7 - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024
Photo Credit: Shutterstock.

Passed in 2022 by President Biden, the law aims to tackle inflation and lower medical costs for Americans. Its goal is to make prescription drugs cost less, as well as combat the national deficit and promote clean energy domestically. Its passage is why Medicare Part D is changing beginning in 2024. 

Why the Change?

pharmacist ss - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024
Image Credit: Shutterstock.

Medicare can now negotiate the cost of drugs with pharmaceutical companies. The Inflation Reduction Act created this allowance. Due to the Medicare Modernization Act of 2003, Medicare could not previously negotiate prices with pharmaceutical companies.

Change Continued…

Polarization - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024
Image Credit: Shutterstock.

The Inflation Reduction Act allows the Health and Human Services (HHS) secretary to negotiate drug prices on behalf of Medicare in a tiered method. They are beginning with up to ten prescription drugs negotiated by 2026 and an additional 15 drugs per year until 2028. Then, the HHS secretary may negotiate the prices for up to 20 medications per year in 2029 and beyond.

How Will Part D Change?

insulin ss - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024
Image Credit: Shutterstock.

Medicare Part D will change in three big ways. First, Medicare can negotiate drug costs. Secondly, a maximum out-of-pocket cap is set to $2,000. Finally, insulin costs can not exceed $35 a month for beneficiaries. 

Other Changes 

patients ss - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024
Image Credit: Shutterstock.

Another aspect of Medicare Part D that will be changing is the catastrophic coverage phase. Currently, this phase is known for high costs, especially for those participants with high drug costs. 

Catastrophic Coverage Details 

Woman with money
Image Credit: Shutterstock.

However, beginning in 2024, Medicare Part D enrollees will no longer be obligated to pay the 5% coinsurance that is currently required during the catastrophic coverage phase. This change translates to a capped out-of-pocket spending threshold for Part D enrollees. Taking away the 5% coinsurance requirement will save participants thousands of dollars. 

Extra Help Changed

prescription ss - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024
Image Credit: Shutterstock.

Another change coming to Medicare Part D involves the Extra Help program. Extra Help aids low-income participants. These beneficiaries pay nothing for premiums and a fixed copayment for prescription drugs. 

New Extra Help 

patient doctor ss - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024
Image Credit: Shutterstock.

Starting in 2024, Extra Help will be available to more Americans. This program will be expanded to those who fall between 135% and 150% of the federal poverty line and meet the predetermined resource limit requirements.

How to Prepare 

medicare form ss - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024
Image Credit: Shutterstock.

Be sure to research your plan options and compare your coverage to ensure you make the most informed decision possible regarding your 2024 Medicare Part D coverage and understand the changes that took place.

MORE FROM WEALTHY NICKEL – 47 SURPRISING WAYS TO MAKE AN EXTRA $1,000 A MONTH

woman holding one dollar bill
Image Credit: donikz / Shutterstock.

Could you use an extra $1,000 a month? Here are 47 realistic ideas you may not have considered before to balance your budget.

47 SURPRISING WAYS TO MAKE AN EXTRA $1,000 A MONTH

10 CITIES IN SERIOUS DANGER OF BANKRUPTCY

new york city cabs ss - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024
Image Credit: Shutterstock.

A recent study ranked U.S. cities on their level of debt and many are facing insolvency. Here are the 10 cities closest to bankruptcy.

10 CITIES ON THE BRINK OF BANKRUPTCY

“YOU’RE FIRED”: 12 CRAZY FACTS ABOUT DONALD TRUMP YOU NEVER KNEW

Donald Trump
Image Credit: Shutterstock.

As a businessman, reality television star, and politician, Donald Trump has attracted a lot of attention and scrutiny. Here are several crazy facts about Donald Trump you probably haven’t heard.

“YOU’RE FIRED”: 12 MIND-BLOWING FACTS ABOUT DONALD TRUMP YOU NEVER KNEW

14 HIGH-PAYING JOBS THAT NOBODY ACTUALLY WANTS TO DO

sanitation worker
Image Credit: Shutterstock.

People avoid certain high-paying professions like the plague, even though they offer excellent salaries and benefits. Why is that? Here are some jobs that are not as popular as you might think.

14 HIGH-PAYING JOBS THAT NOBODY ACTUALLY WANTS TO DO

THE DECAY OF OUR SOCIETY: 10 THINGS THAT WERE ONCE GREAT THAT HAVE BEEN LOST FOREVER

shutterstock 1188289456 scaled e1682482541350 - Biden's Inflation Reduction Act Brings Big Medicare Changes in 2024
Image Credit: Shutterstock.

While society has made progress in some areas, many things were just better in the past. Here are 10 things we wish hadn’t disappeared in the name of “progress”.

The Decay of Our Society: 10 Things That Were Once Great That Have Been Lost Forever

Source.

Leave a Comment