The provision, signed into law by President Biden, will significantly lower out-of-pocket drug costs for many of the nearly 1.8 million Michigan seniors enrolled in Medicare Part D coverage.
Starting in 2026, the prices for these drugs will decrease for up to nine million seniors, thanks to a provision in President Biden’s Inflation Reduction Act that allows Medicare to negotiate the prices for these drugs directly with the manufacturers.
Short-term plans offer limited coverage, can deny coverage based on pre-existing conditions, and trick consumers into buying products that provide “little or no coverage when they need it most."
The Lower Drug Costs for Families Act would require drug companies to pay a penalty if they raise prices faster than inflation and use those funds to protect and preserve Medicare.
Republicans immediately rejected Biden's plan, but have yet to release their own budget. They have made it clear, however, that they want to apply deep spending cuts to everything from health insurance to food assistance benefits.
Biden’s plan would increase the Medicare tax rate on Americans earning above $400,000 from 3.8% to 5% to help keep Medicare solvent into the 2050s. No one earning under $400,000 a year would pay a dime more in taxes, under Biden’s plan.
House Republicans want to apply deep cuts to everything from health insurance to food assistance benefits, an effort that would plunge millions more Americans into extreme poverty.
The Biden administration announced recently that the U.S. will no longer be in a COVID-19 emergency as of May 11, which means that an estimated five to 14 million Americans could lose access to health insurance via Medicaid.
