The Inflation Reduction Act of 2022 was signed into law last August, establishing a diverse package of health, tax, and climate change provisions – including several provisions to lower prescription drug costs for Medicare patients and reduce federal drug spending. Implemented in phases, the first was designed to accomplish three things: capping out-of-pocket insulin prices at $35 a month, requiring rebates from drug companies if drug prices rise faster than inflation, and reducing adult vaccine costs while expanding coverage for them.

The Inflation Reduction Act mandates that participating plan sponsors must attest that the actuarial value of prescription drug coverage for qualifying covered retirees, Part D eligible individuals who are not enrolled in a prescription drug plan or a Medicare Advantage prescription drug (MAPD) plan, is at least equal to the actuarial value of Part D standard prescription drug coverage.