Understanding the Health Provisions in the Inflation Reduction Act

President Biden signed the Inflation Reduction Act of 2022 into law on August, 16, 2022. KFF has several analyses relevant to understanding the health provisions in the legislation, as well as their potential impact on people.

Among other measures, the legislation for the first time requires the HHS Secretary to negotiate prices for some top-selling drugs covered in Medicare. It also requires drug companies to pay rebates if prices rise faster than inflation for drugs used by Medicare beneficiaries. And it caps out-of-pocket drug spending for beneficiaries in Medicare Part D at $2,000 annually.

The bill also extends for three years the enhanced Affordable Care Act subsidies that Congress passed last year as part of the American Rescue Plan Act. That temporary boost increased the amount of financial help available to people already eligible to buy subsidized health plans in the ACA Marketplaces, and expanded subsidies to more middle-income people, many of whom were previously priced out of coverage.

Medicare prescription drug provisions

ACA subsidies


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