The National Inflation Reduction Act of 2022 Effect on Health Care
In 2021 at least 30 million people in the United States had no health insurance. The recent pandemic has made it harder for American residents to access affordable health care plans. Health care plans, especially for the low–income individuals and their families.
Health care is a significant concern and a great pillar in an economy of a country. Thus, there is a great push for the bill on Inflation Reduction Act of 2022 into action. In this article, we have outlined everything you need to know about the effects the National inflation package has on health Insurance.
Benefits of the Inflation Acts of 2022 on Health Insurance
The bill has many benefits to offer Americans. It will ensure a three-year extension to the pandemic relief bill passed during the pandemic under the Affordable Care Act. The inflation act of 2022 will also ensure low subsidies and premiums for health care.
These subsidized premiums will help the majority with federal health insurance exchange coverage. Below are more benefits people will enjoy from passing the national inflation package.
Lowering the cost of health care and prescription drugs
The bill aims to reduce the cost of prescription drugs and health insurance. Consequently, this will improve American health in general. Seniors and working families will enjoy more affordable prescriptions.
The bill also seeks to allow the federal health secretary to negotiate the prices of expensive drugs for Medicare every year. The combined effect on health insurance and prescription drug price subsidies will help curb inflation. Medicare will save the government billions over ten years.
When the bill passes, it will lower health costs for 13 million Americans who rely on the Affordable Care Act (ACA) health care plans. Premium tax credit enhancement under the American Rescue Plan will bring down the cost of health care for many people, an average of $800 a year.
An annual limit to manufacturers on drug prices increase
The bill also imposes a rebate on the drug manufacturers who increase drug prices faster than the country’s inflation. There will be a limit to drug prices rising for people with private insurance and Medicare on the bill’s implementation.
The rebate will take effect in 2023, using 2021 as the base year for determining the price changes relative to inflation. Inflation rebate provision will depend on how many drugs had low prices increased and the magnitude change against the set baseline prices.
The general provision aims to reduce the Medicare beneficiaries’ pocket money spending. That helps millions of Americans avoid spikes in the cost of their health care.
Limitations of the Inflation Acts of 2022 on Health Insurance
The bill, yet, has some limits. The bill will take some time before the actual implementation. So, the beneficiaries will wait until 2025 for the negotiation to approve ten specific drugs and until 2029 for ten more. Additionally, not all prescription drugs will be inclusive.
Inflation Reduction only caps insulin for patients using Medicare only and not for people with private insurance.
Bottom Line
Health experts say that Health insurance premiums could increase if the national inflation package isn’t passed. The bill has a lot to offer for millions of people. Affordable health insurance is an essential benefit that allows citizens to access healthcare services without having financial difficulties.
With a lot happening in the world, we suggest you ensure your loved ones have coverage in the event something unplanned happens to either of you. Life insurance gives you peace of mind knowing that your dependents are protected.
Healthcare Solutions Team is a wholly-owned subsidiary of the National General Insurance Group and Allstate Insurance Company.