WASHINGTON, D.C. — U.S. Senator Bob Casey (D-PA), Chairman of the U.S. Senate Special Committee on Aging, introduced the Cutting Copays Act on Wednesday, a new legislation aiming to reduce prescription drug costs for hundreds of thousands of low-income Pennsylvanians. The law targets Americans enrolled in the Medicare Part D Low Income Subsidy Program, also known as Extra Help, who earn less than $15,060 per year.
Currently, beneficiaries of the Extra Help program pay up to $1.55 for each generic drug they are prescribed. Under the Cutting Copays Act, this cost would drop to zero. Based on 2021 figures, this would have benefited over 350,000 Pennsylvanians.
“The high cost of prescription drugs is a weight on the shoulders of Pennsylvania seniors and families, and for many of our seniors, it’s a weight that’s become far too heavy to bear,” said Chairman Casey. “The Cutting Copays Act is just the latest way that I am taking action to lower drug costs and make sure our seniors can afford the medications they need.”
This legislation is in line with Senator Casey’s ongoing efforts to make prescription drugs more affordable for Pennsylvanians. In August 2022, he championed the Inflation Reduction Act (IRA), which contained several provisions aimed at reducing the cost of prescription medications.
As a result of the IRA, the insulin costs for 80,200 Pennsylvanians on Medicare Part B and D have been capped at $35 a month. The legislation also introduced measures such as a cap on out-of-pocket costs at $2,000 and the ability for Medicare to negotiate fair drug prices. These changes are set to lower costs for hundreds of thousands of Pennsylvanians.
Last summer, Chairman Casey introduced the Protect Seniors from High Drug Costs Act. This legislation seeks to further reduce drug costs by prohibiting health plans and pharmacy benefit managers from charging Medicare Part D beneficiaries more in cost-sharing than the net cost of the drug.
If passed, the Cutting Copays Act could significantly alleviate the financial burden of prescription drugs for low-income seniors across Pennsylvania, and potentially set a precedent for similar measures across the country.
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