Rep. Neguse, Rep. Crow Discuss Inflation Reduction Act, Lower Health Care Costs for Colorado Seniors

Statement

Today, Rep. Joe Neguse joined Rep. Jason Crow and Coloradans from across the state to discuss the historic passage of the Inflation Reduction Act during a press call with Protect Our Care. Colorado seniors and working families in the 2nd Congressional District will soon see more affordable prescription drugs for Medicare recipients and lower health insurance premiums made possible by the Inflation Reduction Act.

"With the Inflation Reduction Act now the law of the land, we have taken bold, necessary steps to rein in out-of-control health care costs and lower prescription drug prices for America's seniors," said Rep. Neguse. "I have long been an advocate for reforming our health care system, and believe this bill is a significant step forward in making our health care system more accessible and affordable for Coloradans across our state."

Affordable Health Care

By extending critical tax credits set to expire this year, the Inflation Reduction Act will help 33,000 people in the district currently enrolled in subsidized marketplace health insurance coverage through the Affordable Care Act save an average of $1,360 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 $13,668 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 2,000 Medicare Part D beneficiaries in the district had out-of-pocket costs above $2,000 in 2020.

For the estimated 4,600 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 $26 million lower.

Medicare beneficiaries in the district could have saved a total of $8 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.

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