The Inflation Reduction Act of 2022 aims to lower drug costs, reduce the federal deficit, and expand access to Low-Income Subsidies, reshaping healthcare affordability and pharmaceutical pricing. While 33 percent of Medicare Part D enrollees will benefit, most savings are concentrated among those using high-cost specialty drugs, with average reductions of about $400 annually. The Act also expands LIS eligibility, potentially increasing enrollment and reducing patient costs by $5,000 a year. Key changes include capping annual out-of-pocket expenses at $2,000, shifting financial risk from Medicare to Part D plans and manufacturers, and enabling HHS to negotiate maximum fair prices for select costly drugs.

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