THE BIDEN-HARRIS ADMINISTRATION has made expanding access to high-quality, affordable health care a
top priority in the United States. That includes working to bring down health care costs and strengthen health
care coverage so Americans can have peace of mind knowing that an emergency or a visit to the doctor’s
office won’t send them into bankruptcy.
According to projections from the U.S. Department of Health and Human Services, because of President
Biden’s Inflation Reduction Act – his landmark law to lower prescription drug costs – about 459,000
Tennesseans will save an average of $417 per year on prescription drug costs when new policies, including
the $2,000 annual out-of-pocket cap on Medicare prescription drug costs go into effect in 2025.
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This is in
addition to the tens of thousands of Tennesseans who are already saving money on insulin and vaccines
because of President Biden’s prescription drug law.
The President’s new lower cost prescription drug law is helping to connect more Americans to quality care
while giving them some extra financial breathing room. This includes:
• Capping a month’s supply of each covered insulin at $35 for people with Medicare;
• Making recommended vaccines available at no cost for people with Medicare Part D;
• Eliminating catastrophic cost-sharing, capping annual out-of-pocket drug costs for prescription
drugs, and expanding low-income assistance for people with Medicare Part D starting in 2024;
• Allowing Medicare to negotiate better prescription drug prices;
• Requiring drug companies to pay a rebate to Medicare if they raise prices faster than inflation; and
• Continuing enhanced premium tax credits that helped 13 million people covered under the
Affordable Care Act save an average of $800 on their Marketplace health insurance in 2022.
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Lowering Medicare Drug Costs for Hundreds of Thousands of Tennesseans
In 2022, Medicare Part D enrollees in Tennessee spent an average of $385 out-of-pocket on drugs.
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• In 2024, the changes to Medicare’s prescription drug benefit are expected to save about 379,000
Medicare Part D enrollees in Tennessee a total of over $97 million.
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• In 2025, the changes are expected to save about 459,000 Medicare Part D enrollees in Tennessee a
total of nearly $192 million.
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Nearly 40,000 Medicare Part B and Part D enrollees in Tennessee would have saved an average of
$494 per person in 2020 on their insulin costs under the Inflation Reduction Act.
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•
This would have resulted in total savings of $19,534,028 across all people with Medicare Part B
and D in Tennessee.
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Nearly 59,000 Medicare Part D enrollees in Tennessee would have saved an average of $75 in 2021
on their out-of-pocket costs for vaccines under the Inflation Reduction Act.
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• This would have resulted in total savings of $4,416,899 across all people with Medicare Part D
in Tennessee.
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1
https://aspe.hhs.gov/sites/default/files/documents/93a68f3c5ca949dcf331aa0ec24dd046/aspe-part-d-oop.pdf
2
https://www.cms.gov/newsroom/press-releases/biden-harris-administration-launches-window-shopping-affordable-and-accessible-health-care
3
https://aspe.hhs.gov/sites/default/files/documents/bd5568fa0e8a59c2225b2e0b93d5ae5b/aspe-insulin-affordibility-datapoint.pdf
4
https://aspe.hhs.gov/sites/default/files/documents/329fd579ada6515d3be404f06821c361/aspe-ira-vaccine-part-d.pdf
The Biden-Harris Administration
is Lowering Health Care Costs for
Millions of People Across Tennessee
Over 1.4 million residents of Tennessee were enrolled in Medicare as of March 2023.
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•
As of March 2023, over 1.1 million residents of Tennessee were enrolled in Medicare Part D.
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Increasing Access to Affordable Health Care for Tennesseans
The Biden-Harris Administration has a simple vision: “health care is a right for all and not a privilege for the
lucky few.” That’s why the Biden-Harris Administration has made expanding access to high-quality,
affordable health care a top priority. Three hundred million people now have access to quality, affordable
health care, including over 16 million who enrolled through the Marketplace, made possible because of the
Affordable Care Act.
More people in Tennessee have health insurance coverage since the implementation of the
Affordable Care Act.
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Since the implementation of the Affordable Care Act, the total uninsured rate in Tennessee
decreased 3.9 percentage points (13.9% in 2013 vs. 10% in 2021).
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In 2023, 348,000 residents of Tennessee signed up for coverage related to the Marketplace under the
Affordable Care Act.
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• In 2022, the average subsidy per month for consumers who received a subsidy in Tennessee was
$545 and the average monthly premium after subsidies was $119.
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• In addition, 80% of Tennessee enrollees could find coverage for $10 or less.
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Strengthening Medicaid
More people in America rely on Medicaid for comprehensive, quality health coverage than on any other
program. To date, 40 states and the District of Columbia have expanded Medicaid under the Affordable Care
Act, meaning more people in those states will now have access to better health coverage and a pathway to a
more prosperous and healthy future. As of February 2023, approximately 93 million people were enrolled in
Medicaid or the Children’s Health Insurance Program (CHIP).
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In the last two years, the Biden-Harris
Administration has expanded access to uninterrupted postpartum coverage for a full year after birth, has
urged states to expand service delivery in schools, including for behavioral health care, and under section
9817 of the American Rescue Plan states are spending over $25 billion in federal and state Medicaid funds
on activities to enhance, expand, or strengthen home and community-based services.
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• As of February 2023, over 1.8 million residents of Tennessee were enrolled in Medicaid or
CHIP.
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• Tennessee has not expanded Medicaid under the Affordable Care Act. If Tennessee were to
expand Medicaid an estimated 179,000 people would be newly eligible for health coverage.
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5
https://data.cms.gov/summary-statistics-on-beneficiary-enrollment/medicare-and-medicaid-reports/medicare-monthly-enrollment//data
6
https://www.aspe.hhs.gov/reports/current-health-coverage-under-affordable-care-act
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https://www.cms.gov/files/document/early-2022-and-full-year-2021-effectuated-enrollment-report.pdf
8
https://www.cms.gov/CCIIO/Resources/Data-Resources/QHP-Choice-Premiums
9
https://www.medicaid.gov/medicaid/national-medicaid-chip-program-information/downloads/february-2023-medicaid-chip-enrollment-trend-
snapshot.pdf
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https://www.medicaid.gov/medicaid/home-community-based-services/guidance/strengthening-and-investing-home-and-community-based-services-
for-medicaid-beneficiaries-american-rescue-plan-act-of-2021-section-9817/index.html
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https://www.medicaid.gov/medicaid/national-medicaid-chip-program-information/medicaid-chip-enrollment-data/monthly-medicaid-chip-
application-eligibility-determination-and-enrollment-reports-data/index.html
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https://www.aspe.hhs.gov/reports/updated-estimates-medicaid-eligibility-non-expansion-states
