The Capping Prescription Costs Act would cap annual out-of-pocket prescription drug costs at $2,000 for individuals and $4,000 for families
Casey’s bill builds on the success of the Inflation Reduction Act, extends out-of-pocket caps to commercial health care market
Casey introduces bill ahead of today’s Aging Committee hearing on lowering health care costs
Washington, D.C. - Today, U.S. Senators Bob Casey (D-PA), Chairman of the U.S. Senate Special Committee on Aging, and Reverend Raphael Warnock (D-GA) introduced the Capping Prescription Costs Act, which would lower prescription drug costs for millions of Americans. The bill would place annual caps on out-of-pocket costs for prescription drugs—$2,000 for individuals and $4,000 for families. Casey’s bill builds on the success of the Inflation Reduction Act, which capped prescription drug cost-sharing for Medicare Part D beneficiaries, extending the savings to the commercial health care market.
“Prescription drug costs are like a bag of rocks tied around the necks of millions of Americans, weighing them down every single day,” said Chairman Casey. “My new bill will place a cap on out-of-pocket prescription drug costs for Americans with private insurance, building on the success of the Inflation Reduction Act and lightening the load that has been weighing down Americans for far too long.”
“Long before I came to the U.S. Senate, I was fighting to make health care more affordable and accessible. Struggling families shouldn’t have to skip refills, ration prescriptions, and risk their health just to afford the medications they need to survive,” said Senator Reverend Warnock. “In a nation as rich and powerful as the United States that should never be the case, so I’m proud to join Senator Casey to introduce the Capping Prescription Costs Act that will help families afford the prescriptions they need to live healthy, full, independent lives.”
Over 60 percent of American adults take at least one prescription drug, with 25 percent of adults taking four or more. Yet Americans often pay more for the same prescription drugs than people in other countries, and due to the cost burden, American patients often cannot afford their medications as prescribed. This results in patients skipping doses, cutting doses in half, or taking over-the-counter medications instead of their prescriptions. One study found that 31 percent of patients did not take their medications as prescribed due to cost.
Chairman Casey has long been a leader in the Senate’s efforts to bring down prescription drug costs. In August 2022, Casey fought to pass the Inflation Reduction Act (IRA) to lower health care and prescription drug costs for older adults, people with disabilities, and families across the Nation. Starting in January 2023, the IRA capped the cost of insulin for Medicare Part D beneficiaries at $35 a month for certain covered insulin products. The law also will limit Medicare beneficiaries’ out-of-pocket costs at $2,000 per year beginning in 2025.
Casey’s new bill will extend that out-of-pocket cost cap to the commercial health care market. The new $2,000 cap on cost-sharing for individuals and $4,000 for families will apply to all of the 173 million Americans who have private health insurance.
Read more about the Capping Prescription Costs Act here.
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