What’s the Inflation Reduction Act?

What is the Inflation Reduction Act and why is it important to folks on Medicare? I started to think about the changes that are happening in the Medicare Prescription Drug world and thought I would give a little update for those who are curious.

CMS states, “In August 2022, President Biden signed the Inflation Reduction Act of 2022 into law. The new law makes improvements to Medicare by expanding benefits, lowering drug costs, and improving the sustainability of the Medicare program for generations to come. The law provides meaningful financial relief for millions of people with Medicare by improving access to affordable treatments and strengthening Medicare, both now and in the long run.

For the first time, the law provides Medicare the ability to directly negotiate the prices of certain high expenditure, single source drugs without generic or biosimilar competition. Below is the list of 10 drugs covered under Medicare Part D selected for negotiation for initial price applicability year 2026, based on total gross covered prescription drug costs under Medicare Part D and other criteria as required by the law.

Eliquis, Jardiance, Xarelto, Januvia, Farxiga, Entresto, Enbrel, Imbruvica, Stelara, and Fiasp/Fiasp FlexTouch/Fiasp PenFill/NovoLog/NovoLog FlexPen/NovoLog PenFill”

CMS is making strides to help lower the cost of expensive drugs for people on Medicare. Each year they will add more drugs to the list in hopes to continue lowering medication costs.

“On January 17, 2025, CMS announced the selection of the below list of 15 drugs covered under Medicare Part D for the second cycle of negotiations (initial price applicability year 2027), based on total gross covered prescription drug costs under Medicare Part D and other criteria as required by the law.

Ozempic/Rybelsus/Wegovy, Trelegy Ellipta, Xtandi, Pomalyst, Ibrance, Ofev, Linzess, Calquence, Austedo/Austedo XR, Breo Ellipta, Tradjenta, Xifaxan, Vraylar, Janumet/Janumet XR, and Otezla.”

If you have any questions, please let me know.