Inflation Reduction Act of 2022: The Basics

On August 16th, 2022, President Biden signed into law H.R. 5376, a budget reconciliation measure known as the Inflation Reduction Act (IRA). The IRA makes wide-reaching changes to healthcare, specifically to Medicare prescription drug coverage. The IRA also includes other provisions to address energy and climate policy changes. Key provisions for drug coverage changes are summarized below.

New for current year 2023

Upcoming for calendar year 2024

Changes to be implemented in calendar year 2025

Changes planned for calendar years 2026 to 2029

With the passage of the IRA, implementation of these pricing reforms now becomes the main focus. It is up to Medicare to ensure that selecting drugs to be negotiated and that the evidence supporting these choices is clear. The IRA also further delays the Part D Rebate Rule*,* which has not gone into effect, to CY 2032.

Elixir will continue to monitor all new guidance related to the IRA and its impact to the Medicare prescription drug benefit. Please contact your designated Elixir Account Manager or Compliance Officer if you have any questions.

UPDATE: CMS released updated Program and PDE Guidance on 9/26/2022. Elixir is reviewing the new guidance and will provide a separate communication to our clients.