According to the research website Definitive Healthcare, consumers spent $603 billion on prescription drugs in 2021. Photo by Adobe Stock.

By Terri Dee
Indiana News Service

INDIANA — Indiana ranks 20th among states for its prescription drug spending and especially for older adults, some help is on the way.

The Inflation Reduction Act includes several provisions to address the skyrocketing prescription drug costs, with attention focused on Medicare enrollees. The Biden administration has unveiled price reduction agreements for the first group of Medicare-covered drugs based on negotiations with manufacturers.

Michael Cabonargi, regional director for the U.S. Department of Health and Human Services, explained which types of medications are on that list.

“This is the first 10 drugs, again, the most prescribed, most expensive,” Cabonargi outlined. “For things like hypertension, diabetes, cardiovascular disease. But we’re going to be expanding that.”

Medicare will select up to 15 additional drugs covered under Medicare Part D for negotiation in 2025. Out-of-pocket drug costs will also be capped at $2,000 for Medicare enrollees, resulting in an average savings of roughly $1,500 for those who qualify.

According to the website USAfacts.org, Indiana ranks 19th in the nation in health care spending per person. In 2020, health care spending by businesses, insurance companies, households and government totaled more than $12,000 for each Indiana resident.

Cabonargi believes many people will see some relief because of the changes.

“It really is going to change the trajectory of health care expenses in this country,” Cabonargi stressed. “For seniors, in particular, they’re going to have money back in their pocket.”

Pharmaceutical companies have been critical of the policy changes, predicting they will harm innovation and some conservative groups have called for a rollback of the provisions.