HENRICO, V.A. — U.S. Representative Abigail Spanberger today released a new, district-specific report detailing how the Inflation Reduction Act — now law — will lower prescription drug costs for seniors and increase savings on health insurance premiums for families in Virginia’s Seventh District.
“For far too long, multinational pharmaceutical companies have inflated drug prices, exploited seniors, and forced families to choose between paying for healthcare — including lifesaving medications and health insurance — and putting food on the table. Since I first came to Congress, I’ve recognized this hardship faced by Virginians and have worked to lower prescription drug costs — both with the Biden Administration and Trump Administration alike. By passing the Inflation Reduction Act into law, we took long-overdue steps to make a real difference for families in Virginia and across our country,” said Spanberger. “The Americans we represent expect us to address the issues that are at the top of their minds and stretching them thin. For so many of our neighbors across the Seventh District, this means tackling the skyrocketing cost of essential medications and healthcare. This data is clear — we are putting Virginia patients, families, and seniors first.”
The U.S. House Committee on Oversight and Reform report on benefits of the Inflation Reduction Act’s health coverage provisions for Seventh District residents can be found here.
The U.S. House Committee on Oversight and Reform report on benefits of the Inflation Reduction Act’s Medicare drug pricing provisions for Seventh District residents can be found here.
Lowering Prescription Drug Costs
- The Inflation Reduction Act caps annual out-of-pocket costs for prescription drugs covered by Medicare Part D at $2,000 per year starting in 2025. An estimated 3,000 Medicare Part D beneficiaries in the district had out-of-pocket costs above $2,000 in 2020.
- For the estimated 6,600 Medicare beneficiaries receiving insulin in the district, the new law will cap monthly copayments for insulin products at $35 per month.
- The Inflation Reduction Act finally allows Medicare to negotiate the price of certain prescription drugs. If the Inflation Reduction Act’s drug pricing provisions had been fully in effect in 2020:
- The total cost of prescriptions filled by Medicare beneficiaries in the district could have been $29 million lower.
- Medicare beneficiaries in the district could have saved a total of $9 million in reduced premiums and out-of-pocket costs.
Preventing Premium Hikes of Middle Class Families
- By extending critical tax credits set to expire this year, the Inflation Reduction Act will help 28,000 people in the district currently enrolled in subsidized marketplace health insurance coverage through the Affordable Care Act save an average of $970 in premiums starting next year.
- Thanks to the Inflation Reduction Act, a family in the district with two adults, two children, and a household income of $75,000 could save $2,832 on their premiums next year.
- A single-parent household with one adult, one child, and a household income of $30,000 could save $1,260 on their premiums next year.
- A household of two adults over the age of 60 with a joint income of $70,000 could save $16,800 on their premiums next year.
The urgent need for these reforms was demonstrated by the Committee on Oversight and Reform’s drug pricing investigation, which revealed how the pharmaceutical industry’s uninhibited pricing practices lead to price gouging and runaway costs for Americans.
Spanberger has long focused on lowering drug costs for Virginia families. In July 2021, the Congresswoman introduced the bipartisan Preserving Rules Ordered for the Entities Covered Through (PROTECT) 340B Act to prohibit insurers and Pharmacy Benefit Managers (PBMs) from discriminating against 340B providers or their contract pharmacies on the basis of their status as providers or pharmacies that dispense 340B drugs. Earlier this year, Spanberger pressed the Biden administration to take immediate action against drug manufacturers that refuse to comply with the 340B laws on the books
In 2019, the U.S. House passed her bipartisan Public Disclosure of Drug Discounts Act on a vote of 403-0 to help tackle the prescription drug affordability crisis and bring greater transparency to prescription drug negotiations. And in 2021, she also introduced the bipartisan Improving Transparency to Lower Drug Costs Act to hold PBMs accountable by requiring PBMs to report their aggregate rebates, discounts, and other price concessions for prescription drugs to a public website.