Message From the CEO: IRA Spells Good News for Drug Costs
It’s a little early for us to talk about benefits for 2025. But one thing I want to start talking about with you sooner rather than later is the Inflation Reduction Act (IRA), which was signed into law in 2022.
It may not sound exciting, but this is one piece of legislation you’ll want to know about because the IRA spells good news for Medicare drug costs.
If you’re not familiar with the IRA, experts say it will bring about the largest change to the Medicare Part D (prescription drug) program in almost 20 years.
Now, some of the changes have already taken place—there’s a maximum on how much you pay for insulin, for example, and most vaccines cost you $0. (See? Good news already.) But 2025 is the year you’ll see some of the biggest impact from the IRA.
So, what’s still to come?
- No more coverage gap (donut hole)!
- A payment plan option for high-dollar drugs!
- A safety net, so that if your prescription costs ever add up to $2,000 in a year, you will pay $0 for all your prescriptions the rest of the year!
If you’re wondering what all this means—and, more importantly, how it will affect the price of your prescription drugs—we’ve got you.
We don’t have all the specifics yet—Medicare is still finalizing some details—so we’ll be communicating much more about this in the coming months. Keep an eye on your mailbox and your inbox, and check our website for regular updates.
We’ve seen our share of changes in Medicare over the years and have helped our members navigate every one. We’re here to help you, too. We’ll be in touch soon.
Thank you,
Sachin H. Jain, MD, MBA, FACP
President and CEO, SCAN Health Plan
“I’ve had SCAN for over 20 years—not one disappointment. This senior insurance is the real deal.”
—SCAN member Dennis S.
