By the Office of Rep. Salud Carbajal
Today, Rep. Salud Carbajal released a new report detailing how Central Coast families will soon see more affordable prescription drugs for Medicare recipients and lower health insurance premiums made possible by the Inflation Reduction Act.
The report highlights how the new law signed last month will save Central Coast seniors more than $30 million on their prescription drug costs, avert massive increases in health care premiums, and lower out-of-pocket costs for thousands in California’s 24th Congressional District.
“The Inflation Reduction Act is a landmark bill that meets the greatest challenges that we are facing today—from rising energy prices and health care costs to the worsening damage of the climate crisis,” said Congressman Carbajal. “But having worked for years to lower health care costs for Central Coast families, I am proud that this bill will deliver key savings on health care premiums and prescription drugs–helping our families and older Californians make ends meet and finally capping out-of-control health care costs.”
The full report can be found here.
Inflation Reduction Act benefits for Central Coast residents include:
Affordable Health Care
- By extending critical tax credits set to expire this year, the Inflation Reduction Act will help 31,385 people on the Central Coast currently enrolled in subsidized marketplace health insurance coverage through the Affordable Care Act save an average of $1,410 in premiums starting next year.
- A Central Coast family 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 $24,024 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 2,000 Medicare Part D beneficiaries on the Central Coast had out-of-pocket costs above $2,000 in 2020.
- For the estimated 4,400 Medicare beneficiaries receiving insulin in the California’s 24th Congressional 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 from pharmaceutical companies. 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 $31 million lower.
- Medicare beneficiaries in the district could have saved a total of $9 million in reduced premiums and out-of-pocket costs.
The Inflation Reduction Act also provides a range of incentives to consumers to relieve the high costs of energy and decrease utility bills, including direct consumer incentives to buy energy efficient and electric appliances, vehicles, and HVAC systems.
More information on the Inflation Reduction Act can be found here.
Rep. Salud Carbajal represents California’s 24th congressional district, encompassing Santa Barbara, San Luis Obispo and part of Ventura County. He sits on the House Armed Services Committee, Agriculture Committee, and Transportation and Infrastructure Committee, where he serves as the Chair of the Subcommittee on Coast Guard and Maritime Transportation.