Biden Signs Inflation Reduction Act

By Jonathan Springston, Editor, Relias Media

President Biden on Tuesday signed the Inflation Reduction Act, an omnibus legislative package loaded with tax code reform, clean energy development, and various healthcare provisions.

Regarding healthcare, the Inflation Reduction Act allows Medicare to negotiate the price of prescription drugs, puts a cap of $35 on a one-month supply of insulin for Medicare beneficiaries, caps pharmacy costs for Medicare Part D beneficiaries at $2,000 per year, and extends federal tax credits to those seeking to purchase insurance plans through Affordable Care Act marketplaces.

Department of Health and Human Services Secretary Xavier Becerra called this legislation “a win for the American people,” while Centers for Medicare & Medicaid Services Administrator Chiquita Brooks-LaSure said the act “will bring families the peace of mind that comes with knowing you can keep your family healthy and it won’t break the bank.”

America’s Health Insurance Plans praised the three-year extension of healthcare marketplace subsidies, calling it “much-needed relief for hardworking American families.” The American Diabetes Association has been a leading advocate for lowering the costs of insulin, noting “this first national copay cap is a significant step in the right direction and a potentially life-saving policy change for seniors.”

Meanwhile, regarding prescription drug costs negotiation, the Pharmaceutical Research and Manufacturers of America called this “a tragic loss for patients” and “a highly unbalanced bill based on empty promises.”

After Congress passed the Inflation Reduction Act, the nonprofit, nonpartisan Kaiser Family Foundation hosted an hour-long panel discussion on the details of the legislation’s healthcare provisions, which is available here.

For more on this and related subjects, be sure to read the latest issues of Hospital Case Management.