ICYMI: How the Inflation Reduction Act Could Lower Your Drug Costs

TIME Highlights Prescription Drug Savings in the Inflation Reduction Act

In Case You Missed It — The Inflation Reduction Act passed by Senate Democrats on Sunday contains several provisions that will lower health care costs for American families.

As TIME highlights, the bill allows Medicare to negotiate drug prices, caps out-of-pocket costs, guarantees access to free vaccines for Medicare recipients, and also requires pharmaceutical companies pay rebates if their drug prices rise faster than inflation. The bill also extends Affordable Care Act subsidies for three years that helped expand health care coverage for 13 million Americans.

The House of Representatives is set to vote on the bill tomorrow.

READ COVERAGE FROM TIME HERE

KEY QUOTES:

  • Democrats are on the verge of a sweeping health care achievement that will address one of the country’s most intractable problems: high prescription drug costs.

  • The [Inflation Reduction Act] passed on Aug. 7 with a 51-50 vote along party lines, and Vice President Kamala Harris casting the tie-breaking vote. But the idea is extremely popular across the political spectrum, and will give Democrats a political win they can campaign on going into November.

  • Prescription drug prices have increased sometimes two to three times the rate of inflation, Glen Fewkes, director of health care access and affordability at AARP, said during an Invest in America event last month. While the rebates will be limited to those on Medicare, the CBO previously said it expects the policy to have some spillover effects that would reduce the costs of prescription drug benefits on commercial insurance plans.

  • “All of this is incredibly life changing,” Rep. Susie Lee, a Democrat from Nevada, said during the event hosted by Invest in America.

About Invest in America

Invest In America is a national rapid response operation advocating for robust public investment to rescue the economy from the COVID crisis and create prosperity for the future, and to fight back against fear-mongers who use deficit concerns as a scapegoat to starve American communities and businesses of resources.

The operation consists of two components: Invest in America, the charitable and public education arm, which is a fiscally sponsored project of Economic Security Project funded by the William and Flora Hewlett Foundation and Economic Security Project co-chair Chris Hughes; and Invest in America Action, the advocacy and social welfare arm, which is a fiscally sponsored project of Economic Security Project Action funded by Chris Hughes and the Omidyar Network.

Learn more at InvestInAmericaNow.com and @InvestNowUSA, and InvestinAmericaProject.com.

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