When President Joe Biden signed the Inflation Reduction Act into law in 2022, the U.S. government gained the ability to negotiate prices on expensive prescription drugs for the first time ever. Though the bill’s effects will not be felt until 2026, it is intended to lower costs for covered users by billions of dollars annually, passing savings onto taxpayers.
Who Does This Affect?
The Department of Health and Human Services (HHS) is negotiating prices for 60 drugs for Medicare beneficiaries by 2028.Medicare Part A is hospital insurance, Part B is medical insurance, Part C (also known as Medicare Advantage) is a private plan approved by Medicare that offers additional insurance, and Part D is insurance for prescription drugs.
