IRA saves Medicare enrollees nearly $1 billion in 1st-half 2024

The US Department of Health and Human Services (HHS), through the Office of Assistant Secretary for Planning and Evaluation (ASPE), yesterday released new data showing that nearly 1.5 million people with Medicare Part D saved nearly $1 billion in out-of-pocket prescription drugs costs in the first half of 2024 because of the Biden-Harris Administration’s Inflation Reduction Act.

Due to the Inflation Reduction Act, some people with high drug costs have their out-of-pocket drug costs capped at around $3,500 in 2024. Next year that cap lowers to $2,000 for everyone with Medicare Part D. The report shows that if the $2,000 cap had been in effect this year, 4.6 million enrollees would have hit the cap by June 30 and would not have to pay any more out-of-pocket costs for the rest of the year.

“Nearly a billion dollars – that's how much people with Medicare saved in just the first half of this year because of President Biden’s and Vice President Harris’s lower cost prescription drug law,” said HHS Secretary Xavier Becerra, adding: “The Biden-Harris Administration promised they would strengthen Medicare and deliver savings for the American people, and this new data shows we’re delivering on that promise.”