Inflation Reduction Act Signed into Law

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President Joe Biden recently signed the Inflation Reduction Act into law. Although the law is primarily aimed at fighting inflation and reducing carbon emissions, it contains several reforms which will impact health coverage. They will be implemented over the next several years.

The healthcare reforms primarily impact those with Medicare coverage.

• Enhanced Exchange subsidies are extended for three years. They were set to expire at the end of 2022.
• In 2023, monthly insulin costs will be capped at $35 per month for Medicare enrollees.
• In 2025, out-of-pocket prescription drug costs will be capped at $2,000 for Medicare beneficiaries.
• In 2026, negotiations for certain prescription drug costs begin.

Individuals should become familiar with the health reforms to determine how their health coverage and costs may be affected. Download the bulletin for more details.