President Biden’s prescription drug law, the Inflation Reduction Act, was signed into law on August 16, 2022. This new law provides meaningful financial relief for millions of people with Medicare by expanding benefits, lowering drug costs, and strengthening Medicare for the future.
What's New
Medicare Drug Price Negotiations
Negotiations are underway between HHS and the participating drug companies of the first 10 prescription drugs selected for negotiation in the first cycle of the Medicare Drug Price Negotiation Program. The first 10 drugs selected treat conditions such as blood clots, diabetes, heart disease, heart failure, autoimmune diseases, and chronic kidney disease.
CMS has entered into negotiations to ensure that people with Medicare will have access to innovative, life-saving treatments at lower costs to Medicare. Learn more about the Medicare drug price negotiation process.
Low-Income Subsidy (Extra Help) Program Expansion
Additional savings are available to those eligible for Medicare’s Extra Help program. Starting January 2024, the Extra Help program’s full benefit is available to all eligible Medicare recipients.
In 2024, everyone who qualifies for Extra Help will pay:
- $0 for Medicare drug plan premium
- $0 for plan deductible
- A reduced amount for both generic and brand-name drugs
More information on the Extra Help program is available at https://www.medicare.gov/basics/costs/help/drug-costs. To enroll in the Extra Help program, visit SSA online at ssa.gov/extrahelp.
Medicare Part D Out-of-Pocket Costs
As of January 1, 2024, some enrollees now have their out-of-pocket drug costs capped at about $3,500. Additional savings arrive in 2025 when yearly Part D out-of-pocket costs will be capped at $2,000. Read and share the lower out-of-pocket drug costs in 2024 and 2025 article.
Celebrate the 2nd Anniversary of the Inflation Reduction Act
Check out how the Inflation Reduction Act is capping out-of-pocket costs for seniors and others on Medicare
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Inflation Reduction Act Toolkit
Learn more about the Inflation Reduction Act
Read the Latest Inflation Reduction Act Blog
Accomplishments under the Inflation Reduction Act:
Many with Medicare are already seeing lower health care costs as they access the care they need. Milestones that have been met to lower health care costs and improve benefits include:
$35 Insulin Cap and Other Savings
Ensuring people with Medicare pay no more than $35 for a month’s supply of each covered insulin product
All 3.4 million Medicare Part D enrollees who filled an insulin prescription in 2023 received a monthly supply of insulin for $35 or less
Offering free recommended preventive vaccines with Medicare Part D prescription drug coverage
Inflation Rebates
Requiring rebates to the Medicare program when prescription drug companies raise their prices faster than inflation
Lowering the enrollee’s share of costs for some Part B drugs with prices increasing faster than inflation for people with Traditional Medicare and Medicare Advantage
Drug Price Negotiations
Allowing Medicare to negotiate with participating drug companies to get lower drug prices for certain drugs covered under Medicare
Beginning negotiations with the participating drug companies that manufacture all 10 drugs selected for the first cycle of negotiations
Insurance Premiums and Medicaid
Providing help to purchase plans on HealthCare.gov and State-based Marketplaces
Requiring state Medicaid programs to cover recommended approved vaccinations for many adults in Medicaid and CHIP
Health care cost savings by state
Scroll over a state to see the savings estimated to be achieved under the policies limiting Part D out-of-pocket costs in 2024 thanks to the Inflation Reduction Act. Click on a state to read the full infographic. An infographic with national data is also available in English and Spanish.
Select a state for information
Select a state in the form above for more information
Alabama PDF
About 306,000 Medicare Part D enrollees are expected to save $67 million+
Alaska PDF
About 24,000 Medicare Part D enrollees are expected to save $4 million+
Arizona PDF
About 319,000 Medicare Part D enrollees are expected to save $70 million+
Arkansas PDF
About 178,000 Medicare Part D enrollees are expected to save $37 million+
California PDF
About 1,900,000 Medicare Part D enrollees are expected to save $310 million+
Colorado PDF
About 177,000 Medicare Part D enrollees are expected to save $48 million+
Connecticut PDF
About 211,000 Medicare Part D enrollees are expected to save $44 million+
Delaware PDF
About 48,000 Medicare Part D enrollees are expected to save $12 million+
District of Columbia PDF
About 31,000 Medicare Part D enrollees are expected to save $3 million+
Florida PDF
About 1,200,000 Medicare Part D enrollees are expected to save $285 million+
Georgia PDF
About 499,000 Medicare Part D enrollees are expected to save $120 million+
Hawaii PDF
About 68,000 Medicare Part D enrollees are expected to save $9.5 million+
Idaho PDF
About 65,000 Medicare Part D enrollees are expected to save $18 million+
Illinois PDF
About 449,000 Medicare Part D enrollees are expected to save $120 million+
Indiana PDF
About 306,000 Medicare Part D enrollees are expected to save $85 million+
Iowa PDF
About 127,000 Medicare Part D enrollees are expected to save $41 million+
Kansas PDF
About 101,000 Medicare Part D enrollees are expected to save $34 million+
Kentucky PDF
About 280,000 Medicare Part D enrollees are expected to save $63 million+
Louisiana PDF
About 282,000 Medicare Part D enrollees are expected to save $53 million+
Maine PDF
About 110,000 Medicare Part D enrollees are expected to save $20 million+
Maryland PDF
About 233,000 Medicare Part D enrollees are expected to save $52 million+
Massachusetts PDF
About 407,000 Medicare Part D enrollees are expected to save $79 million+
Michigan PDF
About 541,000 Medicare Part D enrollees are expected to save $113 million+
Minnesota PDF
About 184,000 Medicare Part D enrollees are expected to save $55 million+
Mississippi PDF
About 178,000 Medicare Part D enrollees are expected to save $40 million+
Missouri PDF
About 276,000 Medicare Part D enrollees are expected to save $77 million+
Montana PDF
About 45,000 Medicare Part D enrollees are expected to save $13 million+
Nebraska PDF
About 67,000 Medicare Part D enrollees are expected to save $26 million+
Nevada PDF
About 117,000 Medicare Part D enrollees are expected to save $31 million+
New Hampshire PDF
About 56,000 Medicare Part D enrollees are expected to save $17 million+
New Jersey PDF
About 353,000 Medicare Part D enrollees are expected to save $101 million+
New Mexico PDF
About 110,000 Medicare Part D enrollees are expected to save $18 million+
New York PDF
About 928,000 Medicare Part D enrollees are expected to save $196 million+
North Carolina PDF
About 542,000 Medicare Part D enrollees are expected to save $132 million+
North Dakota PDF
About 26,000 Medicare Part D enrollees are expected to save $8 million+
Ohio PDF
About 542,000 Medicare Part D enrollees are expected to save $147 million+
Oklahoma PDF
About 166,000 Medicare Part D enrollees are expected to save $44 million+
Oregon PDF
About 186,000 Medicare Part D enrollees are expected to save $43 million+
Pennsylvania PDF
About 646,000 Medicare Part D enrollees are expected to save $174 million+
Puerto Rico PDF
About 113,000 Medicare Part D enrollees are expected to save $9 million+
Rhode Island PDF
About 57,000 Medicare Part D enrollees are expected to save $11 million+
South Carolina PDF
About 271,000 Medicare Part D enrollees are expected to save $68 million+
South Dakota PDF
About 31,000 Medicare Part D enrollees are expected to save $11.5 million+
Tennessee PDF
About 379,000 Medicare Part D enrollees are expected to save $97 million+
Texas PDF
About 1,100,000 Medicare Part D enrollees are expected to save $258 million+
Utah PDF
About 76,000 Medicare Part D enrollees are expected to save $22 million+
Vermont PDF
About 36,000 Medicare Part D enrollees are expected to save $11 million+
Virginia PDF
About 314,000 Medicare Part D enrollees are expected to save $83 million+
Washington PDF
About 288,000 Medicare Part D enrollees are expected to save $70 million+
West Virginia PDF
About 117,000 Medicare Part D enrollees are expected to save $24 million+
Wisconsin PDF
About 234,000 Medicare Part D enrollees are expected to save $66 million+
Wyoming PDF
About 16,000 Medicare Part D enrollees are expected to save $6 million+