Biden's act ushers in major cost-saving changes to Medicare

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Biden's act ushers in major cost-saving changes to Medicare
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President Joe Biden signed the wide-ranging Inflation Reduction Act (IRA) into law on Tuesday afternoon, bringing welcome news for many retirees.

, the federal low income subsidy program, which offers assistance in paying for their monthly Part D premiums, annual deductibles, and co-payments related to Medicare prescription drug coverage.

Currently, around 500,000 people on Medicare have incomes between 135-150% of the poverty level and receive a partial benefit. Under the new law, they would be eligible for the entire amount as long as they meet the other criteria.The health benefits of the new law are heartening and while it's a step forward, most of the provisions won't take hold for a number of years.

Retiree Al Berliner and Michaele Gagnier greet each other at Spanish Springs Town Square in The Villages, Florida, March 16, 2020. REUTERS/Yana Paskova

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