Prescription costs for Medicare Part D recipients might go down significantly if President Joe Biden’s budget proposal is approved.
The Biden administration asked Medicare prescription plans to keep the co-pay for high-cost pharmaceuticals like anti-cholesterol and blood pressure pills at $2 or less in its budget proposal, which was released this week.
Once the new regulations are finalized, medication prices will start to drop on October 1, the first day of the fiscal year 2025 budget.
Seniors living below the poverty line may find relief from price caps, allowing them to pay for necessities like groceries, rent, and medications.
According to Think Advisor, Medicare costs are expected to rise sharply in the years ahead. They are projected to reach $839 billion this year and might reach $1.7 trillion by 2034 due to the increasing number of baby boomers retiring.
A study by the Alliance for Lifetime Income estimates that around 4.1 million Americans will turn 65 this year and in the years following until 2027. This means that more seniors will start getting Medicare coverage than before.
Medicare’s obesity and nutrition counseling would get more money under Biden’s proposed budget.
From 2025 to 2034, the budget would provide an extra $150 billion to Medicaid for in-home care.
The seniors may be excited by the budget plan at first, but they need to consider the repercussions before moving forward. Chris Westfall, the creator of the Senior Savings Network, notes that consumer consequences of government insurance laws are not always obvious until after the law is in force.
Maximum out-of-pocket expenditures for prescription medications will be reduced beginning in 2025 due to the Inflation Reduction Act. The insulin pen NovoLog FlexPen may cost as little as $30.
However, whether or not the price reductions are good is a matter of debate.
According to Westfall, several Medicare Advantage plans and Part D providers are presently exploring new ways to pass the costs on to consumers while making a profit.
