Archived Insight | September 29, 2022

Inflation Reduction Act’s Implications for Medicare Part D

By Melanie C. Clark, ASA, FCA, MAAA, EA

The Inflation Reduction Act of 2022, which was signed into law on August 16, 2022, made a number of changes to Medicare Part D.

To help plan sponsors that offer retiree prescription drug coverage stay on top of the changes, we’ve created a handy chart that summarizes them. The chart is organized by year through 2032. In addition to summarizing the changes, it notes the implications for both retirees and plans.

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What the chart covers

The chart covers the following:

  • Changes to copayments for insulin
  • Elimination of cost sharing for adult vaccines and catastrophic coverage
  • Prescription drug manufacturers’ rebates to Medicare
  • Expansion of low-income subsidies
  • Limit on increases to the base Part D premium
  • Cap on out-of-pocket spending
  • Lower Medicare reinsurance payments and higher plan share of costs
  • Implementation of Medicare-negotiated prices for certain high-cost drugs

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This page is for informational purposes only and does not constitute legal, tax or investment advice. You are encouraged to discuss the issues raised here with your legal, tax and other advisors before determining how the issues apply to your specific situations.