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Understanding the Health Provisions in the Senate Reconciliation Legislation

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August 5, 2022
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Understanding the Health Provisions in the Senate Reconciliation Legislation
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As the Senate prepares to vote on a reconciliation bill as soon as this weekend, KFF has some recent analysis important to understanding the health provisions in the sweeping $740 billion legislation, as well as their potential impact on people.

The legislation would lower prescription drug costs for people with Medicare and private insurance and reduce drug spending by the federal government. Most importantly, it would require the US Secretary of Health and Human Services to negotiate drug prices for people on Medicare, require drug companies to pay a rebate to the government if drug prices rise faster than inflation for Medicare and private insurance, and to limit out-of-pocket drug costs for people with Medicare — all proposals with broad public support.

The bill also would extend for three years the expanded Affordable Care Act subsidies that Congress passed last year as part of the American Rescue Plan Act. This temporary increase increased the amount of financial assistance available to people already eligible to purchase subsidized health plans in the ACA Marketplaces and extended subsidies to more middle-income people, many of whom were previously priced out of coverage. .

Medicare Prescription Drug Provisions

AKK subsidies



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