Inflation Reduction Act Signed Into Law
Last month, the Inflation Reduction Act (IRA) was signed into law by President Biden. The large legislative package includes provisions that address a number of policy areas, including health care access and affordability.
The IMF is especially excited to share that the IRA included a provision that establishes a $2000 out-of-pocket cap on costs for Medicare Part D drugs. This means that Medicare beneficiaries will not have to pay more than $2000 in a calendar year. In 2025, patients who have high prescription drug costs and may hit the $2000 threshold early in the year will be able to distribute those costs throughout the year. This is something that the IMF, and the broader patient advocacy community, has worked towards for a long time and will have a significant positive impact on many Medicare beneficiaries.
Some other policies included in the IRA were provisions that will allow Medicare to negotiate prices on a small number of drugs and the extension of enhanced Affordable Care Act tax subsidies.