August 29, 2022

Allsup Explains How New Federal Law Addresses Healthcare for Americans In Three Ways

Allsup explains the impact of key rulings affecting individuals, seniors and employers with the Inflation Reduction Act of 2022

Belleville, Illinois –– August 29, 2022 –– The Inflation Reduction Act of 2022 recently signed into law addresses three key healthcare issues: the cost of drugs for Medicare recipients, a reduction in annual out-of-pocket costs for seniors, and an extension of the subsidies granted under the Affordable Care Act (ACA), according to Allsup, a nationwide provider of disability representation, health insurance benefits and return to work services.

Under the legislation, Medicare will negotiate lower prescription drug prices for some of the most expensive drugs, saving seniors thousands of dollars each year. This will begin in 2026 with 10 drugs, increase to 15 drugs in 2027 and 2028, and 20 drugs in 2029. Effective in 2023, copayments for covered insulin products in Medicare Part D will be limited to $35 per month.

“This is just one provision of the law designed to help Medicare recipients with soaring pharmaceutical costs,” said Bethany Cissell, Allsup Benefits Coordination account manager and healthcare benefits expert. “The law also caps their out-of-pocket costs for medications at $2,000 annually beginning in 2025. Drug manufacturers will also be required to pay rebates if their drug prices increase faster than the rate of inflation.”

Another component of the Inflation Reduction Act is that subsidies, which had been increased through the American Rescue Plan Act of 2021 (ARPA) to help 13 million individuals buy marketplace health insurance with lower premiums, will remain in place through 2025 rather than expire at the end of 2022. Also, the new legislation retains ARPA’s provision to expand subsidies allowing those over 400% of the federal poverty level to have their maximum premiums based on a silver plan capped at 8.5% of their income, thus avoiding the subsidy cliff through 2025. 

As the federal government begins to implement the law, Allsup Benefits Coordination will continue to help employers reduce group health plan costs and help older employees and COBRA-entitled individuals to transition from group health plans to other options, including Medicare and exchange plans.

“With these major revisions in the law, we anticipate that more seniors who may still be employed, will choose to move to Medicare coverage. Or, if they are not yet eligible for Medicare and are no longer employed, a health insurance plan from the exchange may be a better, more affordable option than COBRA, especially with the premium tax credit extensions,” Cissell said.

“Our Allsup health benefits experts have a keen understanding of the varying costs and advantages of complex health insurance plans. We can sort out the differences and provide options for an organization’s employees when they are faced with important choices, particularly in those critical enrollment seasons,” Cissell added. 

For more information about Allsup Benefits Coordination service, call (866) 521-7655 or email

About Allsup

Allsup and its subsidiaries provide nationwide Social Security disability, veterans disability appeal, return to work, and healthcare benefits services for individuals, their employers and insurance carriers. Allsup professionals deliver specialized services supporting people with disabilities and seniors so they may lead lives that are as financially secure and as healthy as possible. Founded in 1984, the company is based in Belleville, Illinois, near St. Louis. Learn more at and @Allsup.