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The Inflation Reduction Act includes several provisions that will lower prescription drug costs for people with Medicare and reduce drug spending by the federal government. This brief summarizes these provisions and discusses the expected effects on people, program spending, and drug prices and innovation.

Trump administrationAdvisory committee on immunization practicesOffice of the actuaryDrug price negotiation programInnovation centerDevelopment of new drugsBiden administrationIncome subsidy programCenters for medicare medicaid servicesOffice of inspectorInflation reduction actPresident bidenFederal governmentNegotiate pricesSome drugs covered underAverage sales price