Inflation Reduction Act: 8/12/22 - $740B Bill PASSES, Biden signs it into law!
- Thread starter FAH1223
- Start date
ADevilYouKhow
Rhyme Reason
Biden Signs Climate, Health Bill Into Law as Other Economic Goals Remain
The bill is the latest victory for the president on overhauling the physical economy, but he has found less support for plans to help workers.
mastermind
Rest In Power Kobe
Stop writing like you know what you talking about
If it was to 2024, totally understandable. 2026, my G?
It was delayed to accommodate big pharma.
That doesn’t explain 3-4 years timeline.
Prescription Drug Price Reforms Won’t Happen for Years
Democrats continue to not learn the lesson that they shouldn’t pass a policy in 2022 that doesn’t kick in until 2026.
prospect.org
The two biggest benefits for seniors in the IRA are the Medicare negotiation of certain high-cost prescription drugs, and the $2,000 out-of-pocket cap. But while price negotiations technically start next year, no consumer will see the benefit until the new prices begin in 2026, and even then on only 10 drugs (another 15 are added in 2027 and 2028, rising to 20 by 2029 and subsequent years).
You could squint and maybe understand the need for a little delay in setting up a negotiation regime. There are some parameters to set up, like the benchmarks for prices and the penalties if drug companies refuse to deal. Maybe you have to train negotiators. But none of that can possibly explain the three-year delay between the beginning of negotiation and the realization of price discounts for seniors. To be crass, it means that substantial numbers of seniors living now will not be alive when the reduction in certain prescription drug prices is realized.
The $2,000 out-of-pocket cap, which is across the board for all seniors, not just on certain drugs, is even worse. That cap doesn’t go into effect until 2025, although out-of-pocket costs get capped at $4,000 in 2024. If there is kind of an explanation for delays in setting up Medicare drug price negotiation, for the out-of-pocket cap there is not. You literally tally up patient out-of-pocket costs, which are fully transparent, until they hit $2,000, and then stop them. Why does this take more than two years to pull off? Medicare itself, the entire program, took only a year to implement.
“We’re claiming that we’re reducing drug prices but the average American is not going to see that,” said Rep. Pramila Jayapal (D-WA), chair of the Congressional Progressive Caucus, in an interview. “That’s the part of the bill that gives me the most heartburn.”
Usually, the reason that major programs are delayed in this day and age is that they cost money once enacted, and dealing with the vagaries of budget scoring means that one way to reduce those costs is to slow down the implementation timeline, so inside the ten-year budget window the programs look cheaper. This is probably why the out-of-pocket cap was delayed—though the cost of the cap isn’t that extensive, and the other limits on drug price growth in the bill make the cap even cheaper.
But the Medicare price negotiation saves money. You would want that to happen as soon as possible, especially if you want to offset spending in the bill. At the very least, there’s no reason to delay negotiation to game the budget reconciliation score.
The only plausible explanation for this is that drug companies asked for more time before the negotiations kicked in, and got just that. Drug industry lobbyists are the biggest spenders on Capitol Hill, and they successfully got their most loyal congressional Democrats to significantly weaken the reform measure. The delay on price negotiation fits with that weakening.
Other parts of the bill do come online more quickly. The insulin price cap of $35 a month for Medicare recipients starts in 2023, as does free vaccine coverage in Medicare and the rebates on Medicare drugs with price increases above inflation. But the inflation rebate is benchmarked to 2021 prices, locking in those high costs, and just would mute price growth. The real benefits here are Medicare negotiations that lower drug prices, and the cap on all prescription drug costs for seniors. Those are delayed.
LOST IN THE SAUCE
The Sauce Apostle
Yeah, I assumed it was to give the pharmaceutical companies some runway to find another scheme to make up for the profit they're going to lose out on.Stop writing like you know what you talking about
If it was to 2024, totally understandable. 2026, my G?
It was delayed to accommodate big pharma.
I’m impressed they got it done.
Let’s keep it pushing.
Let’s keep it pushing.
Stop writing like you know what you talking about
If it was to 2024, totally understandable. 2026, my G?
It was delayed to accommodate big pharma.
This article is worthless.That doesn’t explain 3-4 years timeline.
Prescription Drug Price Reforms Won’t Happen for Years
Democrats continue to not learn the lesson that they shouldn’t pass a policy in 2022 that doesn’t kick in until 2026.
The two biggest benefits for seniors in the IRA are the Medicare negotiation of certain high-cost prescription drugs, and the $2,000 out-of-pocket cap. But while price negotiations technically start next year, no consumer will see the benefit until the new prices begin in 2026, and even then on only 10 drugs (another 15 are added in 2027 and 2028, rising to 20 by 2029 and subsequent years).
You could squint and maybe understand the need for a little delay in setting up a negotiation regime. There are some parameters to set up, like the benchmarks for prices and the penalties if drug companies refuse to deal. Maybe you have to train negotiators. But none of that can possibly explain the three-year delay between the beginning of negotiation and the realization of price discounts for seniors. To be crass, it means that substantial numbers of seniors living now will not be alive when the reduction in certain prescription drug prices is realized.
The $2,000 out-of-pocket cap, which is across the board for all seniors, not just on certain drugs, is even worse. That cap doesn’t go into effect until 2025, although out-of-pocket costs get capped at $4,000 in 2024. If there is kind of an explanation for delays in setting up Medicare drug price negotiation, for the out-of-pocket cap there is not. You literally tally up patient out-of-pocket costs, which are fully transparent, until they hit $2,000, and then stop them. Why does this take more than two years to pull off? Medicare itself, the entire program, took only a year to implement.
“We’re claiming that we’re reducing drug prices but the average American is not going to see that,” said Rep. Pramila Jayapal (D-WA), chair of the Congressional Progressive Caucus, in an interview. “That’s the part of the bill that gives me the most heartburn.”
Usually, the reason that major programs are delayed in this day and age is that they cost money once enacted, and dealing with the vagaries of budget scoring means that one way to reduce those costs is to slow down the implementation timeline, so inside the ten-year budget window the programs look cheaper. This is probably why the out-of-pocket cap was delayed—though the cost of the cap isn’t that extensive, and the other limits on drug price growth in the bill make the cap even cheaper.
But the Medicare price negotiation saves money. You would want that to happen as soon as possible, especially if you want to offset spending in the bill. At the very least, there’s no reason to delay negotiation to game the budget reconciliation score.
The only plausible explanation for this is that drug companies asked for more time before the negotiations kicked in, and got just that. Drug industry lobbyists are the biggest spenders on Capitol Hill, and they successfully got their most loyal congressional Democrats to significantly weaken the reform measure. The delay on price negotiation fits with that weakening.
Other parts of the bill do come online more quickly. The insulin price cap of $35 a month for Medicare recipients starts in 2023, as does free vaccine coverage in Medicare and the rebates on Medicare drugs with price increases above inflation. But the inflation rebate is benchmarked to 2021 prices, locking in those high costs, and just would mute price growth. The real benefits here are Medicare negotiations that lower drug prices, and the cap on all prescription drug costs for seniors. Those are delayed.
It’s just a bunch of complaints and baseless assumptions
mastermind
Rest In Power Kobe
Your post about funding schedules was a baseless assumption
We got some strong contenders for HL WOATs, I'm telling you.
How is it a baseless assumption?Your post about funding schedules was a baseless assumption
We got some strong contenders for HL WOATs, I'm telling you.
mastermind
Rest In Power Kobe
Because you dont understand how funding schedules work.
WTF
Manchin criticizing Sinema? We must be in the Twilight Zone
Sinema responds
Last edited:
Meta Reign
I walk the streets like, ''say something, n!gga!''
What's the strategy?? Serious question.