Rep. Pete Aguilar today announced that families in the Inland Empire will soon see more affordable prescription drugs and lower health insurance premiums because of key provisions in the Inflation Reduction Act: extending Affordable Care Act (ACA) tax credits and allowing Medicare to negotiate directly with drug companies on the price of prescription drugs.
“Working families are going to see real savings and health care costs are going to decrease because of the legislation we’ve passed,” Rep. Pete Aguilar said. “Household budgets have been spread thin because of increased costs and the impact of the global pandemic, so these cost-saving provisions will make a difference in the lives of many of our friends and neighbors. Ensuring that everyone has access to affordable and reliable health care is a top priority and I’m proud of the steps we’ve taken to deliver for the Inland Empire.”
Beginning in 2023, roughly 21,200 people in California’s 31st Congressional District currently enrolled in health insurance coverage through the ACA will save an average of $980. A family with two adults, two children, and a household income of $75,000 could save $2,832. While a single-parent household with one adult, one child, and a household income of $30,000 could save $1,260. Seniors with a joint income of $70,000 could save $12,456.In 2025, the Inflation Reduction Act will cap Medicare beneficiaries’ annual out-of-pocket costs for prescription drugs covered by Medicare Part D at $2,000 per year, which will impact roughly 3,000 residents in the district, according to data compiled by the House Committee on Oversight and Reform. 11,500 Medicare beneficiaries receiving insulin in the district will see monthly copayments capped at $35 per month.
If the provisions in the Inflation Reduction Act had been in place in 2020, Medicare beneficiaries in the district could have saved a total of $10 million in reduced premiums and out-of-pocket costs. The total cost of prescriptions filled by Medicare beneficiaries in the district could have been $31 million lower. On average, Medicare beneficiaries in the district could have saved $200 in out-of-pocket costs.
President Biden signed the Inflation Reduction Act into law in August.
Rep. Aguilar serves as Vice Chair of the House Democratic Caucus and as a member of the House Committee on Appropriations, the Committee on House Administration, and the Select Committee to Investigate the January 6th Attack on the US Capitol.