As recently outlined, the Inflation Reduction Act of 2022 incorporates many of Medicare Rights’ long-standing recommendations to meaningfully improve the lives of people with Medicare and their families.
It would make transformational, long overdue changes to Medicare’s drug pricing system by allowing Medicare to negotiate drug prices for the first time, restructuring Part D to better align pricing incentives, and penalizing drug manufacturers for raising prices faster than inflation.
The bill would also establish historic, potentially lifesaving beneficiary protections. It would cap annual Part D out-of-pocket drug spending at $2,000, extend full Low-Income Subsidy (LIS) assistance to those with incomes up to 150% of poverty, and eliminate cost sharing for Part D-covered vaccines.
Importantly, the legislation is not yet final. It remains under review by the Senate parliamentarian, who must verify that each provision directly impacts government spending or tax revenue. This is a requirement for passage via budget reconciliation, the expedited, filibuster-proof process Senate Democrats are using to advance the bill.
Once fully vetted, the bill is expected to move quickly; the Senate may vote as soon as this weekend. If approved, a House vote could follow in the coming weeks.
This uncertain but short Senate timeline means now is the time to weigh in! Changes could still be made to bring the bill into compliance with budgetary rules or to address any remaining or last-minute concerns from lawmakers.
Tell your Senators to protect the framework’s critical coverage and affordability gains, building on them where possible. While short of what advocates and lawmakers originally envisioned, the Inflation Reduction Act’s reforms would meaningfully strengthen the health and financial security of millions of Americans, delivering tangible affordability improvements while beginning to address the drivers of those costs.
Visit our action center to learn more and send a letter today.
For more information on the Inflation Reduction Act of 2022, please see the legislative text and the following summaries from Senate Democrats: