Enacted in 2022, the Inflation Reduction Act (IRA) includes major provisions to make health coverage more affordable and lower prescription drug costs. The IRA extends the availability of enhanced premium tax credits for Affordable Care Act Marketplace coverage through 2025. It empowers Medicare to negotiate the price of certain single-source, high-priced drugs. The IRA also requires drug manufacturers to pay rebates to the government if their price hikes of Medicare drugs exceed the inflation rate. Further, the IRA restructures the Medicare Part D benefit to limit patients’ out-of-pocket costs.
