Overview of the New Health Reforms
The law’s health reforms primarily impact those with Medicare coverage. Specifically, the law implements the following measures:
- It allows the Secretary of Health and Human Services to negotiate the prices of certain Medicare drugs each year. The negotiations will take effect in 2026 for 10 drugs covered by Medicare, increasing to 20 drugs in 2029.
- Beginning in 2023, the cost of insulin will be capped at $35 per month for people with diabetes enrolled in Medicare.
- Beginning in 2025, out-of-pocket prescription drug costs will be capped at $2,000 per year for Medicare beneficiaries.
- The law also implements a three-year extension on increased health insurance subsidies for coverage purchased through an Exchange. These enhanced subsidies were originally provided as part of the American Rescue Plan Act, a COVID-19 relief bill, and were set to expire at the end of 2022
The Inflation Reduction Act contains a number of health reforms that primarily impact Medicare coverage.
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