Skip to main content


U.S. flag
      An official website of the United States government
              Here’s how you know
        Here’s how you knowDot gov**Official websites use .gov**
                 A **.gov** website belongs to an official government organization in the United States.
                  HTTPS**Secure .gov websites use HTTPS**
                 A **lock** (A locked padlock) or **https://** means you’ve safely connected to the .gov website. Share sensitive information only on official, secure websites. 
  Menu Close
          HHS Search block
    Search
        








  
  
    

  
      

                                      About HHS
    
                        
                              
      
      
      Programs & Services
    
                        
                              
      
      
      Grants & Contracts
    
                        
                              
      
      
      Laws & Regulations Breadcrumb
    Home
                              Inflation Reduction Act of 2022
 Languages
      English
    
                        
                                            
      
      
      Español (Spanish)Text resize icon

                    




Inflation Reduction Act of 2022








  
  
    

  
      





Celebrating the 2nd Anniversary of the Inflation Reduction Act
President Biden’s prescription drug law, the Inflation Reduction Act, was signed into law on August 16, 2022. This new law provides meaningful financial relief for millions of people with Medicare by expanding benefits, lowering drug costs, and strengthening Medicare for the future.What's NewMedicare Drug Price NegotiationsIn a historic moment that will help lower prescription drug prices for millions of people across America, the Biden-Harris Administration announced that it has reached agreements for new, lower prices for all 10 drugs selected for negotiations. These negotiated drugs are some of the most expensive and most frequently dispensed drugs in the Medicare program and are used to treat conditions such as heart disease, diabetes, and cancer. The new prices will go into effect for people with Medicare Part D prescription drug coverage beginning January 1, 2026.If the new prices had been in effect last year, Medicare would have saved an estimated $6 billion, or approximately 22 percent, across the 10 selected drugs. These negotiated prices range from 38 to 79 percent discounts off of list prices. About nine million people with Medicare use at least one of the 10 drugs selected for negotiation. People with Medicare prescription drug coverage are expected to see aggregated estimated savings of $1.5 billion in their personal out-of-pocket costs in 2026. For more detailed information about the negotiated prices please see the Centers for Medicare & Medicaid Services (CMS) Negotiated Prices Fact Sheet.Medicare Part D Out-of-Pocket CostsIn 2024, some people with Medicare prescription drug coverage who have high drug costs now have their out-of-pocket drug costs capped at about $3,500. In just the first quarter of 2024, over 260,000 people benefited from this cap in the catastrophic coverage phase, meaning they will pay no more out-of-pocket through the remainder of the year. Come January 2025, this benefit gets even better when everyone with Part D will have their out-of-pocket costs capped at $2,000. By April 1, 2024, more than 1.7 million people had already reached $2,000 in out-of-pocket costs on their prescription drugs. Read and share the lower out-of-pocket drug costs in 2024 and 2025 article.Celebrate the 2nd Anniversary of the Inflation Reduction Act2nd Anniversary ToolsCheck out how the Inflation Reduction Act is capping out-of-pocket costs for seniors and others on MedicareTestimonialsFind key messages and social media graphics to shareInflation Reduction Act ToolkitLearn more about the Inflation Reduction ActResourcesRead the Latest Inflation Reduction Act BlogBlogsLowering Drug Costs in ActionAccomplishments under the Inflation Reduction Act:Many with Medicare are already seeing lower health care costs as they access the care they need. Milestones that have been met to lower health care costs and improve benefits include:$35 Insulin Cap and Other SavingsMedicare Inflation Rebates Inflation Reduction Act CardEnsuring people with Medicare pay no more than $35 for a month’s supply of each covered insulin product**All 3.4 million** Medicare Part D enrollees who filled an insulin prescription in 2023 received a monthly supply of insulin for $35 or lessOffering free recommended preventive vaccines with Medicare Part D prescription drug coverageExpanding eligibility for the Low-Income Subsidy program, also known as Extra Help, to provide more enrollees with $0 premiums, $0 deductibles, and fixed, reduced copaysInflation RebatesMedicare Prescription Drug Coverage Improvements Inflation Reduction Act CardRequiring rebates to the Medicare program when prescription drug companies raise their prices faster than inflationLowering the enrollee’s share of costs for some Part B drugs with prices increasing faster than inflation for people with Traditional Medicare and Medicare AdvantageDrug Price NegotiationsMedicare Drug Price Negotiation Inflation Reduction Act CardAllowing Medicare to negotiate with participating drug companies to get lower drug prices for certain drugs covered under MedicareCompleted first round of negotiations with the participating drug companies that manufacture all 10 drugs selected for the first cycle of negotiationsThese negotiated prices range from 38 to 79 percent discounts off of list pricesAbout nine million people with Medicare use at least one of the 10 drugs selected for negotiationInsurance Premiums and MedicaidState-based Marketplaces and Medicaid Inflation Reduction Act CardProviding help to purchase plans on HealthCare.gov and State-based MarketplacesRequiring state Medicaid programs to cover recommended approved vaccinations for many adults in Medicaid and CHIP
                        Health care cost savings by stateScroll over a state to see the savings estimated to be achieved under the policies limiting Part D out-of-pocket costs in 2024 thanks to the Inflation Reduction Act. Click on a state to read the full infographic. An infographic with national data is also available in English and Spanish.
                        WAMTNDMNORIDSDWIMINYMEVTNHMARICTWYIAILNEPANJDEINOHCANVUTCOKSMOKYWVVAMDDCAZNMOKARTNNCTXLAMSALGASCFLAKHIPRSelect a state for information
  Choose your stateAlabamaAlaskaArizonaArkansasCaliforniaColoradoConnecticutDelawareDistrict of ColumbiaFloridaGeorgiaHawaiiIdahoIllinoisIndianaIowaKansasKentuckyLouisianaMaineMarylandMassachusettsMichiganMinnesotaMississippiMissouriMontanaNebraskaNevadaNew HampshireNew JerseyNew MexicoNew YorkNorth CarolinaNorth DakotaOhioOklahomaOregonPennsylvaniaPuerto RicoRhode IslandSouth CarolinaSouth DakotaTennesseeTexasUtahVermontVirginiaWashingtonWest VirginiaWisconsinWyomingSelect a state in the form above for more information

    AlabamaPDFAbout 306,000 Medicare Part D enrollees are expected to save $67 million+Download the Fact Sheet PDF for AlabamaAlaskaPDFAbout 24,000 Medicare Part D enrollees are expected to save $4 million+Download the Fact Sheet PDF for AlaskaArizonaPDFAbout 319,000 Medicare Part D enrollees are expected to save $70 million+Download the Fact Sheet PDF for ArizonaArkansasPDFAbout 178,000 Medicare Part D enrollees are expected to save $37 million+Download the Fact Sheet PDF for ArkansasCaliforniaPDFAbout 1,900,000 Medicare Part D enrollees are expected to save $310 million+Download the Fact Sheet PDF for CaliforniaColoradoPDFAbout 177,000 Medicare Part D enrollees are expected to save $48 million+Download the Fact Sheet PDF for ColoradoConnecticutPDFAbout 211,000 Medicare Part D enrollees are expected to save $44 million+Download the Fact Sheet PDF for ConnecticutDelawarePDFAbout 48,000 Medicare Part D enrollees are expected to save $12 million+Download the Fact Sheet PDF for DelawareDistrict of ColumbiaPDFAbout 31,000 Medicare Part D enrollees are expected to save $3 million+Download the Fact Sheet PDF for District of ColumbiaFloridaPDFAbout 1,200,000 Medicare Part D enrollees are expected to save $285 million+Download the Fact Sheet PDF for FloridaGeorgiaPDFAbout 499,000 Medicare Part D enrollees are expected to save $120 million+Download the Fact Sheet PDF for GeorgiaHawaiiPDFAbout 68,000 Medicare Part D enrollees are expected to save $9.5 million+Download the Fact Sheet PDF for HawaiiIdahoPDFAbout 65,000 Medicare Part D enrollees are expected to save $18 million+Download the Fact Sheet PDF for IdahoIllinoisPDFAbout 449,000 Medicare Part D enrollees are expected to save $120 million+Download the Fact Sheet PDF for IllinoisIndianaPDFAbout 306,000 Medicare Part D enrollees are expected to save $85 million+Download the Fact Sheet PDF for IndianaIowaPDFAbout 127,000 Medicare Part D enrollees are expected to save $41 million+Download the Fact Sheet PDF for IowaKansasPDFAbout 101,000 Medicare Part D enrollees are expected to save $34 million+Download the Fact Sheet PDF for KansasKentuckyPDFAbout 280,000 Medicare Part D enrollees are expected to save $63 million+Download the Fact Sheet PDF for KentuckyLouisianaPDFAbout 282,000 Medicare Part D enrollees are expected to save $53 million+Download the Fact Sheet PDF for LouisianaMainePDFAbout 110,000 Medicare Part D enrollees are expected to save $20 million+Download the Fact Sheet PDF for MaineMarylandPDFAbout 233,000 Medicare Part D enrollees are expected to save $52 million+Download the Fact Sheet PDF for MarylandMassachusettsPDFAbout 407,000 Medicare Part D enrollees are expected to save $79 million+Download the Fact Sheet PDF for MassachusettsMichiganPDFAbout 541,000 Medicare Part D enrollees are expected to save $113 million+Download the Fact Sheet PDF for MichiganMinnesotaPDFAbout 184,000 Medicare Part D enrollees are expected to save $55 million+Download the Fact Sheet PDF for MinnesotaMississippiPDFAbout 178,000 Medicare Part D enrollees are expected to save $40 million+Download the Fact Sheet PDF for MississippiMissouriPDFAbout 276,000 Medicare Part D enrollees are expected to save $77 million+Download the Fact Sheet PDF for MissouriMontanaPDFAbout 45,000 Medicare Part D enrollees are expected to save $13 million+Download the Fact Sheet PDF for MontanaNebraskaPDFAbout 67,000 Medicare Part D enrollees are expected to save $26 million+Download the Fact Sheet PDF for NebraskaNevadaPDFAbout 117,000 Medicare Part D enrollees are expected to save $31 million+Download the Fact Sheet PDF for NevadaNew HampshirePDFAbout 56,000 Medicare Part D enrollees are expected to save $17 million+Download the Fact Sheet PDF for New HampshireNew JerseyPDFAbout 353,000 Medicare Part D enrollees are expected to save $101 million+Download the Fact Sheet PDF for New JerseyNew MexicoPDFAbout 110,000 Medicare Part D enrollees are expected to save $18 million+Download the Fact Sheet PDF for New MexicoNew YorkPDFAbout 928,000 Medicare Part D enrollees are expected to save $196 million+Download the Fact Sheet PDF for New YorkNorth CarolinaPDFAbout 542,000 Medicare Part D enrollees are expected to save $132 million+Download the Fact Sheet PDF for North CarolinaNorth DakotaPDFAbout 26,000 Medicare Part D enrollees are expected to save $8 million+Download the Fact Sheet PDF for North DakotaOhioPDFAbout 542,000 Medicare Part D enrollees are expected to save $147 million+Download the Fact Sheet PDF for OhioOklahomaPDFAbout 166,000 Medicare Part D enrollees are expected to save $44 million+Download the Fact Sheet PDF for OklahomaOregonPDFAbout 186,000 Medicare Part D enrollees are expected to save $43 million+Download the Fact Sheet PDF for OregonPennsylvaniaPDFAbout 646,000 Medicare Part D enrollees are expected to save $174 million+Download the Fact Sheet PDF for PennsylvaniaPuerto RicoPDFAbout 113,000 Medicare Part D enrollees are expected to save $9 million+Download the Fact Sheet PDF for Puerto RicoRhode IslandPDFAbout 57,000 Medicare Part D enrollees are expected to save $11 million+Download the Fact Sheet PDF for Rhode IslandSouth CarolinaPDFAbout 271,000 Medicare Part D enrollees are expected to save $68 million+Download the Fact Sheet PDF for South CarolinaSouth DakotaPDFAbout 31,000 Medicare Part D enrollees are expected to save $11.5 million+Download the Fact Sheet PDF for South DakotaTennesseePDFAbout 379,000 Medicare Part D enrollees are expected to save $97 million+Download the Fact Sheet PDF for TennesseeTexasPDFAbout 1,100,000 Medicare Part D enrollees are expected to save $258 million+Download the Fact Sheet PDF for TexasUtahPDFAbout 76,000 Medicare Part D enrollees are expected to save $22 million+Download the Fact Sheet PDF for UtahVermontPDFAbout 36,000 Medicare Part D enrollees are expected to save $11 million+Download the Fact Sheet PDF for VermontVirginiaPDFAbout 314,000 Medicare Part D enrollees are expected to save $83 million+Download the Fact Sheet PDF for VirginiaWashingtonPDFAbout 288,000 Medicare Part D enrollees are expected to save $70 million+Download the Fact Sheet PDF for WashingtonWest VirginiaPDFAbout 117,000 Medicare Part D enrollees are expected to save $24 million+Download the Fact Sheet PDF for West VirginiaWisconsinPDFAbout 234,000 Medicare Part D enrollees are expected to save $66 million+Download the Fact Sheet PDF for WisconsinWyomingPDFAbout 16,000 Medicare Part D enrollees are expected to save $6 million+Download the Fact Sheet PDF for Wyoming
                        News
    

      Commemorating the 2nd Anniversary of the Biden-Harris Lower Cost Prescription Drug Law

          August 16, 2024
  

Negotiating for Lower Drug Prices Works, Saves Billions

          August 15, 2024
  

Biden-Harris Administration Releases Final Part Two Guidance to Help People with Medicare Prescription Drug Coverage Manage Prescription Drug Costs

          July 16, 2024
  

HHS Announces Cost Savings for 64 Prescription Drugs Thanks to the Medicare Rebate Program Established by the Biden-Harris Administration’s Lower Cost Prescription Drug Law

          June 26, 2024

                    
  


Content created by Assistant Secretary for Public Affairs (ASPA) Content last reviewed August 15, 2024 Back to top
    Contact HHS
    
                        
                                            
      
      
      Careers
    
                        
                                            
      
      
      HHS FAQs
    
                        
                                            
      
      
      Nondiscrimination NoticeHHS Archive
    
                        
                                            
      
      
      Accessibility Statement
    
                        
                                            
      
      
      Privacy Policy
    
                        
                                            
      
      
      Viewers & PlayersBudget/Performance
    
                        
                                            
      
      
      Inspector General
    
                        
                                            
      
      
      Web Site Disclaimers
    
                        
                                            
      
      
      EEO/No Fear ActFOIA
    
                        
                                            
      
      
      The White House
    
                        
                                            
      
      
      USA.gov
    
                        
                                            
      
      
      Vulnerability Disclosure Policy
        Sign Up for Email Updates

Receive the latest updates from the Secretary, Blogs, and News Releases.

Sign Up
  HHS Headquarters
          200 Independence Avenue, S.W.
                  Washington, D.C. 20201
                  Toll Free Call Center: 1-877-696-6775​ Disclaimer Policy: Links with this icon () mean that you are leaving the HHS website. The Department of Health and Human Services (HHS) cannot guarantee the accuracy of a non-federal website.
                  Linking to a non-federal website does not mean that HHS or its employees endorse the sponsors, information, or products presented on the website. HHS links outside of itself to provide you with further information.
                  You will be bound by the destination website's privacy policy and/or terms of service when you follow the link.
                  HHS is not responsible for Section 508 compliance (accessibility) on private websites. For more information on HHS's web notification policies, see Website Disclaimers.
 Continue
                  Go back