EBRI Fast Facts

What Employers Should Know About the Inflation Reduction Act and Drug Development

May 1, 2025 3  pages

Summary

The Inflation Reduction Act of 2022 (IRA) introduced the Medicare Drug Price Negotiation Program with the goal of lowering Medicare spending on medications. The IRA primarily targets Medicare but may have indirect implications for employment-based health plans and the use of prescription drugs. This Fast Fact closely examines workers’ current prescription drug utilization vs. drugs' initially approved usage and discusses the implications for employee health and employers.