ICYMI: Davids Touts Federal Law to Lower Insulin Costs for Kansans
This week, Representative Sharice Davids released a special report on how federal legislation is lowering the cost of insulin in Kansas’ Third District. Thanks to the Inflation Reduction Act’s $35 price cap, Kansans on Medicare are saving an average of $620 annually on insulin compared to 2020. People with private insurance and those who are uninsured are also seeing drastically lower costs after drug manufacturers lowered costs to match the popular federal policy.
Rep. Sharice Davids’ new insulin report that shows drastic decreases in monthly insulin prices because of recent federal legislation.
The Kansas Reflector reported on Davids’ work to lower insulin costs:
“‘For too long,’ Davids said, ‘Kansans have been forced to pay extremely high prices for insulin while drug companies rake in massive profits.’
[…]
“That led the Democrat to support passage one year ago of the Inflation Reduction Act, which included provisions making health care more affordable for seniors. At the start of this year, the federal law capped the out-of-pocket cost of insulin for people enrolled in Medicare’s prescription drug plan at $35 for a one-month supply. It also imposed a requirement insulin manufacturers pay a rebate to Medicare if their prices grew faster than inflation.
“Under pressure from consumers eager for an affordable supply of insulin, the three drug companies dominating the U.S. market agreed to extend the $35 cap to people with private health insurance.
“Had the Inflation Reduction Act been in place in 2020, about 15,000 Kansas residents would have saved an estimated $650 annually on out-of-pocket costs.
[…]
“At the one-year mark, Davids said the law held great promise for growing the U.S. economy and dealing with climate change. She said health care pieces of the law succeeded in lowering the burden on thousands of Kansans and illustrated the need to push ahead with mandates capping the price for all insulin users.
“‘I voted for this historic legislation to lower costs for Kansas families,’ she said. ‘The law is lowering health care costs, growing the middle class with new clean energy and manufacturing jobs, and making the largest investment in the fight against climate change in our nation’s history.’”
Background:
Davids released her first insulin report in 2019, which found that Americans paid 5 times more for insulin than people living overseas. In her new report, Davids highlights how recent federal legislation is drastically lowering the cost of insulin for Kansans. Specifically, it finds:
- Nationally, four million Medicare beneficiaries will together save $760 million a year thanks to the $35 insulin price cap.
- Kansans on Medicare using insulin will save an average $620 annually on their insulin.
- 7,100 Kansans in the Third District who are insured through their employer and use insulin will see significant savings due to manufacturer price reductions.
- 530 Kansans in the Third District who are uninsured and use insulin will see significant savings due to manufacturer price reductions.
As shown in Davids’ updated insulin report, the Inflation Reduction Act is already lowering health care costs for Kansans. Along with the $35 insulin price cap for Medicare beneficiaries, the law:
- Reduces Prescription Drug Costs: Empowers Medicare to begin negotiating directly to lower the price of prescription drugs (including insulin) and Medicare beneficiaries' out-of-pocket drug costs at $2,000 per year, with the option to break that amount into affordable monthly payments throughout the year.
- A longtime priority of Davids' to lower costs for Kansans and stop drug companies from gouging consumers, while saving patients and taxpayers hundreds of billions of dollars.
- Cuts Taxes to Lower Premiums: Ensures tax breaks for people who buy health insurance on their own. Many who purchase insurance on Affordable Care Act’s insurance marketplace exchanges are eligible through 2025, saving the average household in the Kansas Third District $980 a year on health insurance premiums.
- Individuals will pay no more than 8.5 percent of their income toward health coverage—down from the current roughly 10 percent. Lower income individuals will pay $0 in premiums.
- Caps Drug Costs: Caps Medicare beneficiaries' out-of-pocket drug costs at $2,000 per year, with the option to break that amount into affordable monthly payments throughout the year.
- 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.