What You Need to Know About the Climate, Tax and Health Bill’s Impact on Medicare

 With the recent passage of the Climate, Tax and Health Bill, the government has set aside $369 billion for clean energy programs, making it the largest climate change bill in United States history. However, the bill also marks a significant stride to promote affordability for Medicare beneficiaries, expanding the Affordable Care Act. Here’s what you need to know: 

• Beginning in 2023, insulin copayments for Medicare enrollees will be capped at $35 per month. This is comparatively more affordable than the current out-of-pocket cost, which stands at $54 a month. 
• As of 2024, Medicare recipients with high enough costs to qualify for a “catastrophic coverage” benefit will no longer be required to pay for 5% of the cost of every prescription. This means huge savings for folks living with chronic health conditions, diseases, or cancer and, for some, the chance to get the medication and care they need.
• Starting in 2025, for Medicare beneficiaries enrolled in drug plans, there will be an annual cap of $2,000 for out-of-pocket costs.
• Enhanced Affordable Care Act subsidies will also be extended through 2025. 
• The Medicare program will now be able to negotiate certain prescription drug prices with pharmaceutical companies, an action that is estimated to save $288 billion over a 10-year window and will drastically reduce the cost of prescription medication for the average older adult.
• Pharmaceutical manufacturers who raise drug costs above the rate of inflation starting in 2023 will have to pay rebates.