Staff Contact: Andrew Wheeler
The U.S. House of Representatives and Senate voted to enact the Inflation Reduction Act of 2022. The president is expected to sign the law soon. The legislation will compel CMS to negotiate the prices of certain prescription drugs under the Medicare program beginning in 2026, require drug manufacturers to issue rebates to CMS for brand-name drugs without generic equivalents that cost $100 or more per year per individual and for which prices increase faster than inflation, and would limit Medicare Part D maximum out-of-pocket costs to $2,000 in 2025. The legislation also would continue to provide out-of-pocket tax credits for individuals who purchase a marketplace product and their income is above 400% of the FPL, as well as continue the special enrollment period for subsidy-eligible applicants with household income up to 150% of FPL through 2025.
