Bill Includes Critical Medicare and Affordable Care Act Provisions
On Sunday, August 7, 2022, the U.S. Senate passed the Inflation Reduction Act (IRA) of 2022, which includes expansive health and climate provisions. The House is scheduled to vote on the bill tomorrow, August 12th.
The IRA is a scaled back, but still transformational, version of the Build Back Better reconciliation package that was debated last year. Among other things, if enacted, the IRA would:
- Allow Medicare to negotiate with drug manufacturers for the price of some Part D and Part B drugs;
- Cap beneficiary out-of-pocket Part D drugs costs at $2,000 per year;
- Impose checks on the annual rise in costs of drugs and Part D premiums;
- Limit monthly out-of-pocket spending for insulin to $35; and
- Expand access to the Part D low-income subsidy (“Extra Help”).
For a more detailed analysis, see this Kaiser Family Foundation report titled “What Are the Prescription Drug Provisions in the Inflation Reduction Act?” (Aug. 11, 2022) and this article in Health Affairs Forefront titled “Understanding The Democrats’ Drug Pricing Package” by Rachel Sachs (Aug. 10, 2022).
We urge the House to pass the IRA and President Biden to sign it into law.