Inflation Reduction Act and Medicare

Part D Improvements

People with Medicare will benefit from lower prescription drug costs and a redesigned prescription drug program. Benefits include:

• Insulin available at $35/month per covered prescription
• Access to recommended adult vaccines without cost-sharing
• A yearly cap ($2,000 in 2025) on out-of-pocket prescription drug costs in Medicare
• Expansion of the low-income subsidy program (LIS or “Extra Help”) under Medicare Part D to 150% of the federal poverty level starting in 2024

Medicare Drug Price Negotiation

Medicare will be able to negotiate directly with drug manufacturers to lower the price of some of the costliest single-source brand-name Medicare Part B and Part D drugs. This means that people with Medicare will have increased access to innovative, life-saving treatments, and the costs will be lower for both them and Medicare.

Inflation Rebates in Medicare 

The new law requires drug companies that raise their drug prices faster than the rate of inflation to pay Medicare a rebate. This will lead to a stronger Medicare for current and future enrollees and discourage unreasonable price increases by drug companies.

Changes to Medicare Part B 

Changes in the Medicare Part B program will improve access to high quality, affordable biosimilars for people with Medicare as well as impose a $35/month cost-sharing cap on insulin used in durable medical equipment pumps.

The Inflation Reduction Act makes Medicare stronger for current and future enrollees. It makes health care more accessible, equitable, and affordable by lowering what Medicare spends for prescription drugs and limiting increases in prices.