How Inflation Reduction Act will lower prescription drug prices

The new Inflation Reduction Act, just signed into law by President Biden last week, will put a cap on out-of-pocket prescription drug prices for Medicare recipients.

Dana Marie Kennedy, the State Director of AARP Arizona spoke to us about what it will mean.

Launching a long-sought goal, the Act will allow the Medicare program to negotiate some prescription drug prices with pharmaceutical companies, saving the federal government some $288 billion over the 10-year budget window.

The result is expected to lower costs for older adults on medications, including a $2,000 out-of-pocket cap for older adults buying prescriptions from pharmacies.

The revenue raised would also be used to provide free vaccinations for seniors, who now are among the few not guaranteed free access, according to a summary document.

Seniors would also have insulin prices capped at $35 a month.