Over half of all Georgians surveyed report being either “somewhat worried” or “very worried” about affording the cost of necessary medicine. From 2013 to 2019, Medicare prescription drug costs grew a staggering 89% in the Peach State to nearly $4,500 per person.
The 2022 Inflation Reduction Act was supposed to help stop these ballooning costs, but new analysis shows that it has actually made matters worse. Since its passage, Medicare premiums for Part D prescription drug plans have risen 20% while causing some premiums to surge more than 25% according to Tim Chapman, president of Advancing American Freedom.
Data shows that prescription price caps accompanying the legislation have already caused a double digit surge in direct consumer costs. By limiting the prices on certain existing medication, the IRA forced drug companies to offset by increasing costs on new medicines and cutting back on rebates and other programs designed to offset copays and consumer costs.
New analysis from Milliman warns that the situation will only grow worse should the rest of the IRA be allowed to take effect.
Known as the Medicare Drug Price Negotiation Program, the provision of the IRA is set to take effect in 2026 and will grant sweeping powers to the White House to set prescription drug pricing. The Biden administration has released a list of the first 10 drugs targeted for control under the IRA.
The St. Louis Federal Reserve warns that price controls like those in the IRA result in quantity shortages on key medicines while the Information Technology & Innovation Foundation points to reduced budgets for research and development and fewer life-saving medicines brought to market.
