NEW REPORT: Georgians Could Save Thousands on Health Care Costs Thanks to Democrats’ Inflation Reduction Act

Savings will stem from provisions to lower prescription drug prices and cap premiums, drug costs for Medicare recipients 

According to a new report from Third Way, Georgians could save thousands on average in health care costs thanks to new provisions in the Inflation Reduction Act and President Biden’s proposed rule fixing the ACA’s “family glitch.” The former will lower drug prices and extend the cap on health care premiums, while the family glitch fix would make coverage more affordable.

According to the report, Georgia families with employer coverage with a median income of $76,620 will see average annual savings of $1,410 from 2023 to 2025, while families with exchange-based coverage will see average annual savings of $2,110. Individual Georgians with exchange-based coverage will save $1,500 on average.

“This report highlights how the Inflation Reduction Act – opposed by every single Senate Republican – will put money back in Georgians’ pockets while also tackling inflation, strengthening our energy security, and creating jobs. As the House prepares to send this crucial legislation to the president’s desk tomorrow, will Georgia’s GOP representatives stand with Democrats and vote to lower health care costs, or put their loyalty to their extreme MAGA agenda ahead of Georgia families?” said Democratic Party of Georgia spokesperson Ryan Radulovacki. 

The Inflation Reduction Act includes several key health care wins for Georgians, including:

• Capping Drug Costs for Seniors: Caps Medicare patients’ out-of-pocket costs at $2,000 per year, with the option to break that amount into affordable monthly payments.
• Affordable Insulin Now: Senator Warnock’s $35-a-month cap on out-of-pocket costs for insulin users covered by Medicare.
• Access to Affordable Health Care: Extends Affordable Care Act (ACA) premium tax credit expansion, as passed in the American Rescue Plan, through 2025, lowers costs across the board for ACA enrollees, and eliminates premiums altogether for lower income enrollees.
• Drug Pricing Reform: Helps lower prescription drug costs by empowering Medicare to begin negotiating directly for the price of prescription drugs (including insulin) in 2026.
• Inflation Rebate: Institutes a new “inflation rebate” under Medicare so that drug companies must rebate back the difference to Medicare if they raise prices higher than inflation.
• Free Vaccinations for Seniors: Provides free vaccines for seniors. Finally makes all vaccines free in Medicare for seniors, the only population for which vaccines were not already free.
• Lower Rx Costs: Expands premium and co-pay assistance on prescription drugs for low-income individuals.

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