The Inflation Reduction Act is bringing a series of revisions to the Medicare Part D Prescription Drug Program that will be phased in over the next six years.
The immediate modifications beginning January 1, 2023, include:
- Insulin copays will be limited to $35/month for ALL Part D Prescription Drug Plans. Previously, the copay was only available in select plans.
- Improved coverage for vaccines in Medicare Part D
- Recommended vaccines (not covered under Medicare Part B) including Shingles and Tdap, will be free for people enrolled in a Medicare Part D prescription drug plan.
- Medicare Part B already covers many vaccines including: the seasonal flu shot, pneumonia, and Hepatitis B
Other provisions are intended to reduce Part D spending. Here are highlights of changes to come:
2024: Eliminates the 5% co-insurance in the catastrophic level of Part D plans
2024 – 2030: Limits Medicare Part D drug plan increases to no more than 6% per year
2025: Establishes a $2,000 out-of-pocket cap on annual drug costs (currently no cap)
2026 – 2029: Implements negotiated pricing for certain high-cost drugs
We’ll keep you informed when more information about these revisions is released.
Lastly, with the forthcoming holiday season we want to remind our clients with plans to travel abroad to stay properly insured. Visit our travel insurance webpage or shoot Patricia an email (email@example.com).