North Carolina and The Inflation Reduction Act
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FOX8North Carolina and The Inflation Reduction Act
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FOX8What The Inflation Reduction Act Does For North Carolina
President Biden and Congressional Democrats have fought tirelessly to pass the historic health
care investments included in the Inflation Reduction Act. These provisions will strengthen the
American health care system, working toward a future where health care is a right, not a
privilege for all North Carolinians. This historic legislation will drastically reduce the cost of
prescription drugs by reining in Big Pharma and cut costs for millions Americans purchasing
coverage on their own through the ACA marketplaces. Not only does this bill address our most
pressing health care challenges, it also puts downward pressure on rising costs and is backed
by more than 120 world renowned economists.
Health care lies at the heart of the Inflation Reduction Act, and the proposals to reduce costs
and expand care are overwhelmingly popular with North Carolinians across the political
spectrum. The Inflation Reduction Act will reduce racial inequities in health care, improve the
health and well-being of seniors and people with disabilities, strengthen families, and save lives
across North Carolina.
Under The Inflation Reduction Act:
● 50,985 Medicare Part D enrollees in North Carolina who experienced out-of-pocket costs
over $2,000 in 2021 will now have their prescription drugs capped at $2,000 per year.
● North Carolinians on Medicare will be protected from Big Pharma’s arbitrary price
hikes that raise drug prices faster than inflation.
● 80 prescription drugs will have Medicare price negotiation by 2030.
● 116,335 North Carolinians on Medicare will have insulin copays capped $35 per month.
● 625,977 North Carolinians will save on monthly health insurance premiums.
The Inflation Reduction Act Lowers Prescription Drug Prices
Gives Medicare The Power To Negotiate Lower Drug Prices. For too long Big Pharma has
been able to dictate prices while North Carolinians pay three times more for their medications
than people in other countries. Under the Inflation Reduction Act, Medicare will be empowered
to negotiate select drug prices for North Carolina’s 1,618,819 Medicare Part D beneficiaries.
Beginning in 2026, 10 drugs will be negotiated with that number increasing to 15 drugs in 2027,
and 20 drugs in 2029 and into the future. By 2030, more than 80 drugs will be eligible for
Medicare price negotiation, in addition to insulin products.
Caps Out-Of-Pocket Spending For Seniors. Medicare Part D out-of-pocket costs for
prescription drugs will be capped at $2,000 per year beginning in 2025, which will benefit 50,985
North Carolinians who experienced out-of-pocket costs over $2,000 in 2020. The bill will also
allow out-of-pocket spending to be smoothed over the course of the year, so patients are not
forced to pay the entirety of their out-of-pocket cost all at one time.
Makes Insulin Accessible And Affordable. Insulin copays for 116,335 North Carolinians on
Medicare will also be capped at $35 each month. Without this cap, North Carolinians on
Medicare Part D without low-income subsidies paid a yearly out-of-pocket average of $591.
Stops Outrageous Medicare Drug Price Increases. The Inflation Reduction Act stops Big
Pharma from raising Medicare drug prices faster than the rate of inflation. This cap would apply
to North Carolinians on Medicare and is critical to stopping arbitrary price increases on essential
medications.
Inflation Reduction Act Lowers Health Insurance Premiums
Lowers Health Insurance Premiums. A record breaking 670,223 North Carolinians
enrolled in an ACA marketplace plan in 2021. Right now, 625,977, or 93 percent with an
ACA plan, are receiving enhanced premium tax credits, making their coverage affordable
and accessible. The Inflation Reduction Act will save an average middle class family of four
in North Carolina $9,137 on their yearly premiums.
Caps the Amount of Money Families Pay for Health Insurance. The Inflation Reduction Act
ensures families above the 150 percent threshold pay no more than 8.5 percent of their income
towards coverage. This will help middle and working class families facing excessive premiums
or living in high-premium areas. Before the American Rescue Plan, middle class North
Carolinians spent an average of 15 percent of their incomes on health insurance. The subsidies
are designed to benefit those who need it most, and they are already means tested, which
means the higher your income, the smaller your tax credits become. A family whose health
insurance premiums alone — not including deductibles — are less than 8.5 percent of their
income receive no tax credits at all.
Addresses Health Care Equity By Expanding Coverage for Communities of Color. The
Center on Budget Policy and Priorities estimates the increased savings continued under the
Inflation Reduction Act will cause a sharp decline in the uninsured rate across every racial
group. The premium savings provided in the American Rescue Plan have made more than 65
percent of uninsured Black adults eligible for zero dollar premium plans and 75 percent eligible
for plans less than $50 a month. For uninsured Hispanic and Latino adults, now more than 68
percent are eligible for zero dollar premium plans and nearly 80 percent can access plans for
less than $50 a month. Health coverage access is imperative to reducing racial disparities in
health coverage across the nation.
Eliminates Premiums For Low-Wage Workers. The Inflation Reduction Act ensures no North
Carolinians with incomes at or below 150 percent of the federal poverty level buying their
coverage on the Marketplace pay a premium.
Cuts Costs For Rural America. Thanks to the provisions in the Inflation Reduction Act, roughly
65 percent of rural Americans will have access to zero dollar premium health coverage and
more than 76 percent will be able to find a plan for less than $50 a month, narrowing the
coverage differences between rural and urban America.