Inflation Reduction Act Saves Bay State Medicare Enrollees Hundreds of Millions

Ahead of her first debate with her Republican opponent, U.S. Sen. Elizabeth Warren’s office is releasing a new report showing hundreds of millions in savings for Medicare recipients in the Bay State.

The report says the Medicare cost savings embedded in the Inflation Reduction Act of 2022 will have saved Massachusetts residents millions by next year.

“In total, these provisions will enable Medicare enrollees in Massachusetts to save up to approximately $170 million on prescription drugs in 2025,” the report reads in part.

The savings come from allowing Medicare to negotiate drug prices on behalf of Part D enrollees, capping out-of-pocket costs for insulin and other prescription drugs, covering vaccinations with no copay, and extending Medicare’s Extra Help program to lower-income individuals The report also says it will enroll new participants and impose penalties on drugmakers that raise drug prices faster than inflation rises.

Warren’s report also comes just in time for the Medicare open enrollment period, which runs from Oct. 15 to Dec. 7 this year, and the senator says it’s a good time for participants to learn about the recent changes that will help make that happen intended to reduce the burden that would otherwise burden them with paperbacks.

“This new report provides seniors and others in Massachusetts with important information about how they can save money when choosing a Medicare prescription drug plan for next year,” Warren said.

The changes didn’t come out of nowhere, the report and Warren say, but are the result of “important reforms implemented by President Biden, Vice President Harris and Senate Democrats.”

“I have worked hard to curb drug price gouging and reduce health care costs through the Inflation Reduction Act, and Medicare members will see significant savings as a result,” Warren said.

According to the report, by capping IRA insulin costs at $35, about 26,000 Bay State Medicare enrollees who take insulin to treat their diabetes will see annual savings of about $500, and about 4,800 will see savings of about Earn $1,000 per year.

According to the report, capping out-of-pocket prescription costs for Medicare Part D enrollees at $2,000 per year will reduce the average out-of-pocket cost of purchasing prescribed medications for 83,000 seniors in the Commonwealth.

“In Massachusetts, this will help 83,000 Part D beneficiaries who otherwise would have paid more than $2,000 out of pocket for their prescription drugs in 2024. These beneficiaries will save an average of $1,500 each. Some beneficiaries can expect to save even more: Next year, 12% of all Part D enrollees nationwide who meet the new cost cap will save $3,000 or more,” the report reads in part.

The report said 97,000 seniors in the Bay State could save more than $5 million annually by covering vaccinations, averaging about $70 per year.

According to the report, anti-price gouging rules that went into effect in 2023 resulted in “an estimated 820,000 Medicare enrollees paying less for prescription drugs – including an estimated 17,000 Medicare Part B enrollees in Massachusetts.”

“The penalties have resulted in an estimated $3 billion in savings for seniors and taxpayers nationwide,” the report said.