Over the weekend, the United States Senate approved the Inflation Reduction Act of 2022 by a 51-50 party line vote with Vice President Kamala Harris casting the tie-breaking ballot.
The legislation includes several provisions that the American Academy of Family Physicians (AAFP) has supported in prior iterations of reconciliation legislation including extending the enhanced premium tax credits for individuals and families purchasing health insurance on the marketplace and eliminating cost-sharing for immunizations in Medicaid and Medicare. The legislation also includes a proposal to reduce prescription drug costs and cap Medicare beneficiaries’ Part D out-of-pocket expenditures. The AAFP sent a letter of support to Senate Democratic leadership expressing support for these key provisions.
- The bill will allow Medicare to negotiate drug prices for the first time. That would start with 10 high-priced drugs by the middle of this decade and expanding from there on.
- The bill will cap out-of-pocket drug costs for seniors enrolled in Part D at $2,000 a year.
- Penalties for increasing prices in the commercial market were removed from the bill.
- The bill caps out-of-pocket costs at $35 per month for insulin co-pays under Medicare programs but the cap for private insurance was removed.
The AAFP, like many health care organizations, is disappointed that many of the original Build Back Better provisions related to the physician workforce (graduate medical education, teaching health centers), Medicaid coverage expansion, and public health infrastructure were stripped out, it still believes that the Inflation Reduction Act is beneficial for family physicians and their patients. The legislation is now being considered by the House of Representatives with expected passage by the end of the week.
Please contact Government Relations Director Jeremy Blake with any questions or concerns.