Skip to content
  • About
  • Contact
  • Contribute
  • Book
  • Careers
  • Podcast
  • Recommended
  • Speaking
  • All
  • Physician
  • Practice
  • Policy
  • Finance
  • Conditions
  • .edu
  • Patient
  • Meds
  • Tech
  • Social
  • Video
    • All
    • Physician
    • Practice
    • Policy
    • Finance
    • Conditions
    • .edu
    • Patient
    • Meds
    • Tech
    • Social
    • Video
    • About
    • Contact
    • Contribute
    • Book
    • Careers
    • Podcast
    • Recommended
    • Speaking

Why the Inflation Reduction Act is a win for health care

Hassaan Asif and Venkatesan Ram Krishnamoorthi, MD
Policy
August 31, 2022
Share
Tweet
Share

Last winter, when the Build Back Better Act (BBBA) was declared “dead” after Senator Joe Manchin of West Virginia revealed that he would not support it, health care reform advocates were disappointed. Hopes that important legislation would finally be passed to bring down the price of prescription drugs, bolster funding for home health care and expand subsidies to more Americans to afford health insurance were dashed.

Therefore, when we heard that Senator Manchin and Senate Majority Leader Chuck Schumer unveiled an enormous bill called the Inflation Reduction Act (IRA) to combat climate change and reform health care, hope was rekindled. It seems as though Senator Manchin, the same centrist who shot down the BBBA, has come around to supporting progressive legislation after many months of negotiations with bipartisan leadership.

The IRA, which has now been passed, includes several provisions that will positively impact the health care system for patients and providers alike. For one, it will allow Medicare to negotiate prices for a small subset of drugs, starting with 10 Part D drugs in 2026 and up to 20 Part B and D drugs in 2029.

These negotiations are expected to save Medicare $288 billion over the next 10 years. Furthermore, the act will cap out-of-pocket costs to $2,000 per year for Medicare beneficiaries and will require drug companies to offer rebates to Medicare if their drug prices increase at a rate faster than that of inflation. Finally, the IRA will expand access to health plans sold on ACA marketplaces by extending the time that subsidies exist to more Americans. Specifically, it would extend premium tax credit subsidies by three years.

While this all does sound hopeful, it is no wonder why those who advocated for more progressive legislation would be disappointed.

The IRA is only a shadow of the now-dead BBBA, President Biden’s original $2 trillion plan to address a host of social issues, including health care. It fails to address certain pieces of legislation that progressives have been advocating for years, such as lowering in-patient hospital costs. The IRA’s prescription drug negotiation provisions are also incredibly restrictive, only allowing drugs to be considered if they meet a host of criteria.

The Kaiser Family Foundation found that only exactly 20 non-insulin drugs would be open to negotiation per the current criteria, but even some of these drugs would not be eligible in 2026 due to increasing competition from generics.

Some progressive health reform advocates have long felt that incremental reform has inadequately chipped away at a broken system that needs a complete overhaul, such as a single-payer system. However, Congress is divided, with any ambitious legislation requiring a super-majority in the Senate (the IRA is reconciliation legislation, so it only requires a simple majority vote), and the national political climate has never been so polarized.

It has been a while since Congress has passed any major social spending, so the IRA is reason to be hopeful, as it shows that the American people still understand the importance of health care reform and its connection to inflation and the long-term well-being of the U.S.

And in some way, this understanding is reflected in Congress beyond the IRA. The Senate is set to vote on the South Asian Heart Health Awareness and Research Act, which has already been passed in the House. Although it may seem that health care reform has taken a backseat, it is clear that the fight is still very much on.

Additionally, the reality of the IRA is such that it will eventually help Americans financially, even if it is just a few hundred dollars back into the pockets of a few million Medicare beneficiaries. This incremental effect is exactly what is needed to shift the public’s support for more progressive approaches to health reform. We saw this play out after the Affordable Care Act was passed in 2010 under Obama.

While approval of the legislation has been largely split by partisanship ever since then, its favorability increased in 2017 when Republicans threatened to remove it. This shows that once the health care provisions of the IRA are in place, the Act is likely to be popular among a wide range of beneficiaries — progressives and conservatives, low and middle-income Americans — because it actually may help struggling Americans, shielding it from future efforts to repeal it by those who oppose it for political reasons.

In effect, these incremental policies have a beneficial impact for Americans and lay the groundwork for progressive policies in health care reform that become harder to overturn as time passes.

ADVERTISEMENT

On the one hand, we can sit idly and bemoan the apparently limited scope of the IRA’s health care provisions. Or on the other hand, we can acknowledge that it is the direct product of decades of advocacy for health care reform.

The Overton window is a concept in politics that describes the range of policies deemed acceptable to the mainstream population at any given time. The window tends to shift either leftwards or rightwards due to influences of “unthinkable” opinions.

While overhaul of our health care system such as single-payer may still be in the category of the “unthinkable,” the passage of the IRA in the Senate is living proof that the shouts and screams of progressives are being heard, and that the window is slowly shifting in favor of major health care reform.

Hassaan Asif is a medical student. Venkatesan Ram Krishnamoorthi is an internal medicine physician.

Image credit: Shutterstock.com

Prev

Why I'm leaving emergency medicine

August 31, 2022 Kevin 5
…
Next

A paradigm of perseverance

August 31, 2022 Kevin 0
…

Tagged as: Public Health & Policy

Post navigation

< Previous Post
Why I'm leaving emergency medicine
Next Post >
A paradigm of perseverance

ADVERTISEMENT

Related Posts

  • How social media can help or hurt your health care career

    Health eCareers
  • How inflation fueled health care costs

    Ricardo Chujutalli, MD, MBA and Jessica Yoong
  • Why health care replaced physician care

    Michael Weiss, MD
  • Health care is not a service commodity

    Peter Spence, MD, MBA
  • Melting the iron triangle: Prioritizing health equity in dynamic, innovative health care landscapes

    Nina Cloven, MHA
  • Why the health care industry must prioritize health equity

    George T. Mathew, MD, MBA

More in Policy

  • Why health care leaders fail at execution—and how to fix it

    Dave Cummings, RN
  • Healing the doctor-patient relationship by attacking administrative inefficiencies

    Allen Fredrickson
  • The hidden health risks in the One Big Beautiful Bill Act

    Trevor Lyford, MPH
  • The CDC’s restructuring: Where is the voice of health care in the room?

    Tarek Khrisat, MD
  • Choosing between care and country: a dual citizen’s Independence Day reflection

    Kathleen Muldoon, PhD
  • How fragmented records and poor tracking degrade patient outcomes

    Michael R. McGuire
  • Most Popular

  • Past Week

    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • How New Mexico became a malpractice lawsuit hotspot

      Patrick Hudson, MD | Physician
    • Why doctors are reclaiming control from burnout culture

      Maureen Gibbons, MD | Physician
    • Why helping people means more than getting an MD

      Vaishali Jha | Education
    • Why public health must be included in AI development

      Laura E. Scudiere, RN, MPH | Tech
  • Past 6 Months

    • Why tracking cognitive load could save doctors and patients

      Hiba Fatima Hamid | Education
    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • What the world must learn from the life and death of Hind Rajab

      Saba Qaiser, RN | Conditions
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • Here’s what providers really need in a modern EHR

      Laura Kohlhagen, MD, MBA | Tech
    • Why flashy AI tools won’t fix health care without real infrastructure

      David Carmouche, MD | Tech
  • Recent Posts

    • Why helping people means more than getting an MD

      Vaishali Jha | Education
    • How digital tools are reshaping the doctor-patient relationship

      Vineet Vishwanath | Tech
    • Why evidence-based management may be an effective strategy for stronger health care leadership and equity

      Olumuyiwa Bamgbade, MD | Physician
    • Why health care leaders fail at execution—and how to fix it

      Dave Cummings, RN | Policy
    • Residency match tips: Building mentorship, research, and community

      Simran Kaur, MD and Eva Shelton, MD | Education
    • From Founding Fathers to modern battles: physician activism in a politicized era [PODCAST]

      The Podcast by KevinMD | Podcast

Subscribe to KevinMD and never miss a story!

Get free updates delivered free to your inbox.


Find jobs at
Careers by KevinMD.com

Search thousands of physician, PA, NP, and CRNA jobs now.

Learn more

Leave a Comment

Founded in 2004 by Kevin Pho, MD, KevinMD.com is the web’s leading platform where physicians, advanced practitioners, nurses, medical students, and patients share their insight and tell their stories.

Social

  • Like on Facebook
  • Follow on Twitter
  • Connect on Linkedin
  • Subscribe on Youtube
  • Instagram

ADVERTISEMENT

  • Most Popular

  • Past Week

    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • How New Mexico became a malpractice lawsuit hotspot

      Patrick Hudson, MD | Physician
    • Why doctors are reclaiming control from burnout culture

      Maureen Gibbons, MD | Physician
    • Why helping people means more than getting an MD

      Vaishali Jha | Education
    • Why public health must be included in AI development

      Laura E. Scudiere, RN, MPH | Tech
  • Past 6 Months

    • Why tracking cognitive load could save doctors and patients

      Hiba Fatima Hamid | Education
    • Why are medical students turning away from primary care? [PODCAST]

      The Podcast by KevinMD | Podcast
    • What the world must learn from the life and death of Hind Rajab

      Saba Qaiser, RN | Conditions
    • Why “do no harm” might be harming modern medicine

      Sabooh S. Mubbashar, MD | Physician
    • Here’s what providers really need in a modern EHR

      Laura Kohlhagen, MD, MBA | Tech
    • Why flashy AI tools won’t fix health care without real infrastructure

      David Carmouche, MD | Tech
  • Recent Posts

    • Why helping people means more than getting an MD

      Vaishali Jha | Education
    • How digital tools are reshaping the doctor-patient relationship

      Vineet Vishwanath | Tech
    • Why evidence-based management may be an effective strategy for stronger health care leadership and equity

      Olumuyiwa Bamgbade, MD | Physician
    • Why health care leaders fail at execution—and how to fix it

      Dave Cummings, RN | Policy
    • Residency match tips: Building mentorship, research, and community

      Simran Kaur, MD and Eva Shelton, MD | Education
    • From Founding Fathers to modern battles: physician activism in a politicized era [PODCAST]

      The Podcast by KevinMD | Podcast

MedPage Today Professional

An Everyday Health Property Medpage Today
  • Terms of Use | Disclaimer
  • Privacy Policy
  • DMCA Policy
All Content © KevinMD, LLC
Site by Outthink Group

Leave a Comment

Comments are moderated before they are published. Please read the comment policy.

Loading Comments...