Lower Drug Prices and Access of MSPs for Seniors
If you’re an American senior who uses Medicare, your ability to access and afford medication is increasing. Medicare is now able to negotiate lower prices for several drugs, including out-of-pocket costs for insulin products, which are capped at $35 per monthly prescription. In addition to reducing the cost of prescription drugs under Medicare, it also places a $2,000 annual limit on out-of-pocket drug spending.
More low-income seniors will be able to access the Medicare Savings Programs (MSPs) provided. The new streamlined application process will begin in mid-November 2023. The MSPs (also called Medicare Buy-In programs or Medicare Premium Payment Programs) help cover some costs, including premiums and deductibles, although many people have not yet enrolled in them.
Negotiation provision
The Inflation Reduction Act’s drug price negotiation provision authorizes the Secretary of the Department of Health and Human Services (HHS) to negotiate prices directly with participating drug manufacturers.
In October 2023, the drug manufacturers chosen for prescription drug price negotiation all agreed to take part in the Act’s Medicare Drug Price Negotiation Program. The Centers for Medicare & Medicaid Services (CMS) will negotiate prescription drug prices and bring down costs for millions of Americans. In the future, the number of drugs that are subject to price negotiation will increase.
Included drugs
The first ten drugs chosen for negotiation are:
- Eliquis for blood clots
- Jardiance for diabetes and heart failure
- Xarelto for blood clots and coronary or peripheral artery disease
- Januvia for diabetes
- Farxiga for diabetes, heart failure and chronic kidney disease
- Entresto for heart failure
- Enbrel for rheumatoid arthritis, psoriasis and psoriatic arthritis
- Imbruvica for blood cancers
- Stelara for psoriasis, psoriatic arthritis, Crohn’s disease and ulcerative colitis
- Fiasp, Fiasp FlexTouch, Fiasp PenFill, Novolog, Novolog Flexpen, and Novolog Penfill for diabetes
Help with MSPs
If you require guidance to navigate the MSPs that are available to you, contact our office to discuss your specific needs.