Inflation Reduction Act Could Cut Medicare Drug Spending by 5%, Study Suggests

Findings from a new simulation-based study suggest the Inflation Reduction Act of 2022 could lead to tens of billions of dollars in savings to the Medicare program, although the study also found important limitations that could blunt the bill’s impact on health care spending.

The wide-ranging Inflation Reduction Act included several economic provisions, but in the health care sector some of the most potentially effective changes were new rules that limited out-of-pocket costs for people on Medicare Part D, penalized drug companies for raising prices faster than inflation, and allowed the government to negotiate the price of certain high-cost...