March 21, 2023
The 10-percent Solution: Who Gets IRA Drug Price Savings?
In new research, AAF President Douglas Holtz-Eakin uses detailed data on Medicare beneficiaries to identify the individuals who will save from the drug pricing provisions in the Inflation Reduction Act (IRA).
- The IRA is advertised as substantially reducing drug costs for a wide swath of Medicare beneficiaries.
- This study finds that at present under 6 million beneficiaries – less than 10 percent – will benefit at all.
- For those who do benefit, savings are typically modest – 69 percent of those with any saving will save less than $300.