(NewsNation) — The cost of prescription drugs in America is a major issue, and a new report suggests a significant impact on millions of older Americans nationwide.
A new AARP report reveals that by 2025, more than 3 million Americans will save over $1,000 on their prescriptions due to the Biden administration’s Inflation Reduction Act.
With inflation running high and Americans spending heavily on medications each year, this could be a deciding factor for voters.
How much will Americans save?
According to AARP, Medicare recipients will see cuts in their prescription drug costs starting next year. Beginning in January, a new $2,000 out-of-pocket cap instituted in the 2022 Inflation Reduction Act will take effect as a part of the first-ever deal with drug manufacturers to lower prices on 10 commonly used drugs for Medicare benefits.
This cap, linked to the Part D prescription drug program that covers around 56 million people, is expected to lower drug costs for 3.2 million Americans.
Diana Divito, a cancer patient from Pennsylvania, was paying more than $800 per month for her leukemia medication.
“I almost had a heart attack when I saw the first copay,” she recalled. “What do people do who can’t afford this? Sadly, many of them probably don’t survive.”
The biggest relief will be felt by people like Divito who rely on high-priced branded drugs.
According to the White House, this change could save Americans hundreds, if not thousands, of dollars on a case-by-case basis, while collectively saving taxpayers billions of dollars on medication costs.
Older Americans worry about drug costs
The cost of prescription drugs is a top concern for many senior voters.
A study published last month in the Journal of the American Medical Association found more than half of older Americans were “very concerned” about the costs of medical care.
Among different groups of seniors, 67% of liberals said they were very concerned, compared with 56% of moderates and 51% of conservatives, according to researchers, as reported by U.S. News & World Report.
Drugmakers argue law will hurt consumers
Drug manufacturers aren’t pleased with these changes.
The Pharmaceutical Research and Manufacturers of America has criticized the Inflation Reduction Act, calling it a bad deal being forced on American patients. The group argues it will lead to higher costs, more insurance denials and fewer available treatments and cures for patients.