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Signed into law on August 16, 2022, the Inflation Reduction Act of 2022 (IRA) establishes new measures and regulatory authorities to control drug costs across the Medicare program.
The IRA provisions, especially those regulating drug prices, will have broad-reaching impact on life sciences and health care stakeholders, including health plans, hospitals, biopharma manufacturers, the federal government, and employers. This new law marks the first significant changes to Medicare drug policy since the Medicare Modernization Act of 2003. It also includes important changes that directly impact consumers in two ways: it will drive down costs for Medicare beneficiaries, primarily through closure of the “donut hole,” and will extend the Affordable Care Act’s premium tax credits to help individuals who purchase health insurance coverage on the exchanges.
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