Illinois Congresswoman Bustos Releases Reports on Inflation Reduction Act Cost Savings for Local Families
Congresswoman Cheri Bustos (IL-17) released reports detailing the cost savings local families will see following the passage of the Inflation Reduction Act. The landmark legislation ensures access to lower health insurance premiums and more affordable prescription drugs for Medicare recipients.
“For far too long, Americans have been forced to choose between paying for health care – including life saving medication and insurance coverage – and putting food on the table. With the Inflation Reduction Act now the law of the land, President Biden and Democrats in Congress have taken bold steps to rein in out-of-control health care costs,” said Rep. Bustos. “I’m proud to have voted for this transformational legislation to improve accessibility and lower health care costs for families across Northwest and Central Illinois.”
Affordable Health Care:
- By extending critical tax credits set to expire this year, the Inflation Reduction Act will help 13,000 people in the district currently enrolled in subsidized marketplace health insurance coverage through the Affordable Care Act save an average of $1,200 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 $15,144 on their premiums 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 3,000 Medicare Part D beneficiaries in the district had out-of-pocket costs above $2,000 in 2020.
Cheri Bustos of Moline is in her 4th term as Congresswoman for Illinois’ 17th District.
- For the estimated 10,200 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 the government to negotiate lower drug prices with Big Pharma. 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 $32 million lower.
- Medicare beneficiaries in the district could have saved a total of $10 million in reduced premiums and out-of-pocket costs.
The urgent need for these reforms was demonstrated by a Kaiser Family Foundation report, which found that prices increased faster than inflation for half of all drugs covered by Medicare in 2020.
The report on benefits of the Inflation Reduction Act health coverage provisions for 17th District residents can be found here.
The report on benefits of the Inflation Reduction Act Medicare drug pricing provisions for 17th District residents can be found here.
