Thompson Releases Report on Benefits of the Inflation Reduction Act for California’s Fifth District


Press Release

Posted: September 4, 2022

St. Helena — Today, Rep. Mike Thompson (CA-05) released a report that showed families in our district will soon see more affordable prescription drugs for Medicare recipients and lower health insurance premiums made possible by the Inflation Reduction Act.

“In the wealthiest country on earth, no one should go bankrupt when receiving health care. For too long, Americans have been forced to choose between putting food on the table or going to the doctor,” said Thompson. “With the Inflation Reduction Act signed into law, our community is going to see lower health care costs from lower premiums and prescription drug costs.”
 
The Inflation Reduction Act benefits our district with:
 
Affordable Health Care
 
By extending critical tax credits set to expire this year, the Inflation Reduction Act will help 28,734 people in our district currently enrolled in subsidized marketplace health insurance coverage through the Affordable Care Act save an average of $1,379 in premiums starting next year.
 
Lower Prescription Drug Costs
 
The Inflation Reduction Act caps Medicare beneficiaries’ annual out-of-pocket costs for prescription drugs covered by Medicare Part D at $2,000 per year starting in 2025. An estimated 2,000 Medicare Part D beneficiaries in our district had out-of-pocket costs above $2,000 in 2020. 

For the estimated 5,800 Medicare beneficiaries receiving insulin in our district, the new law will cap monthly copayments for insulin products at $35 per month.

The Inflation Reduction Act allows the government to negotiate lower drug prices. 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 our district could have been $24 million lower.
•    Medicare beneficiaries in our district could have saved a total of $7 million in reduced premiums and out-of-pocket costs.
The report on benefits of the Inflation Reduction Act health coverage provisions for our district can be found here.

The report on benefits of the Inflation Reduction Act Medicare drug pricing provisions for our district can be found here.