TLDR
- Medicare spent nearly $50 billion in 2022 on 25 high-cost drugs including Ozempic and Trulicity
- Drug prices have almost doubled since market introduction
- Nearly 24 million people enrolled in ACA plans for 2025
- ACA enrollment doubled compared to Trump administration numbers
- Enhanced federal premium subsidies will expire end of 2025
Recent data reveals substantial changes in American healthcare, with Medicare drug spending reaching new heights and Affordable Care Act (ACA) enrollment achieving record numbers in early 2024.
Medicare spent approximately $50 billion in 2022 on 25 of its most expensive medications, including popular diabetes drugs Ozempic and Trulicity. These medications, which haven’t yet been selected for price negotiation, have seen their average list prices nearly double since their initial market introduction.
The financial impact extends to approximately 7 million older adults on Medicare who must pay a portion of these drug costs through pharmacy purchases or mail-order services. AARP’s Public Policy Institute reports that one in five older adults either skip doses or don’t fill prescriptions to save money.
In 2024, about 53 million Americans enrolled in Medicare prescription drug plans. A new $2,000 cap on drug costs provides some relief for enrollees taking the most expensive medications, but concerns about rising prices persist.
The Inflation Reduction Act of 2022 marked a turning point by allowing Medicare to negotiate drug prices for the first time. This legislative change aims to address the continuous rise in medication costs that affects both enrollees and taxpayers.
Leigh Purvis, prescription drug policy principal at AARP’s public policy institute, emphasized the ongoing nature of price increases, stating, “We really are seeing these remarkable price increases year after year.”
On the ACA front, enrollment numbers show dramatic growth during President Biden’s term. Nearly 24 million people have signed up for ACA plans for 2025, with enrollment still open until January 15 in most states.
The enrollment figures include almost 3.2 million new consumers and more than 20.4 million returning participants. This represents a doubling of enrollment compared to the previous administration, when approximately 12 million people signed up for 2021 coverage.
Health and Human Services Secretary Xavier Becerra highlighted this growth, noting that enrollment records have been broken for four consecutive years.
Several factors have contributed to the ACA’s increased popularity, including more generous federal subsidies, enhanced outreach efforts, and simplified enrollment procedures.
The expansion in coverage comes with future uncertainty. The enhanced federal premium subsidies that helped drive enrollment growth are scheduled to expire at the end of 2025.
The decision to extend these subsidies will fall to the next administration and Congress, creating potential implications for millions of Americans who rely on ACA coverage.
During the Trump administration, enrollment reached about 12 million people for 2021 coverage, amid attempts to reduce the program’s accessibility and attractiveness.
The current enrollment period continues until January 15 in most states, with additional sign-ups expected before the deadline.
The latest figures from early 2024 show 20.4 million returning enrollees and 3.2 million new consumers choosing ACA plans, demonstrating sustained growth in healthcare coverage through the marketplace.
The most recent data indicates that Medicare prescription drug plan enrollment stands at 53 million Americans in 2024, with the new $2,000 cap on drug costs now in effect to help manage expenses for those requiring costly medications.
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