From the Overview: "On August 16, 2022, President Biden signed into law P.L. [Public Law] 117-169, a budget reconciliation measure known as the Inflation Reduction Act (the Act). The Act makes wide-reaching changes to Medicare prescription drug coverage and more targeted changes to Medicaid, the State Children's Health Insurance Coverage Program (CHIP), and private health insurance. The Act requires the Secretary of Health and Human Services (Secretary) to negotiate prices for certain drugs covered under Medicare Part B (physician-administered drugs) and Part D (retail prescription drugs), starting with 10 high-spending, single-source drugs for 2026 and increasing to 20 by 2029. Effective in 2023, manufacturers that sell drugs through Parts B and D must pay rebates to Medicare if they increase drug prices faster than consumer inflation. Also in 2023, the Act eliminates enrollee cost sharing for certain vaccines in Part D and sets a $35 cap on enrollee cost sharing for insulin in Parts D and B. Effective in 2025, the Part D benefit is reconfigured to include an annual $2,000 out-of-pocket (OOP) spending cap, expanded subsidies for low-income enrollees, and limits on annual premium increases, among other changes. The Act extends through 2025 more generous premium subsidies for health plans sold on exchanges, which were originally approved in the American Rescue Plan Act (ARPA; P.L. 117-2). Following are the main provisions."
CRS In Focus, IF12203
Congressional Research Service: https://crsreports.congress.gov/