On October 1, 2022, a provision of the Inflation Reduction Act of 2022 (IRA) requires pharmaceutical companies to pay penalties to the federal government if they increase prices for Medicare-covered drugs faster than inflation. Penalties begin in 2023. Between 2021 and 2022, 1,216 drugs had price increases higher than inflation, which averaged 8.5%. The IRA includes several provisions intended to reduce prescription costs for Medicare beneficiaries and reduce overall federal drug spending. Monthly cost sharing for insulin is capped at $35 for people with Medicare starting in 2023. Cost sharing will be eliminated for adult vaccines covered . . .
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