The Health Care Provisions in the Senate Reconciliation Package

ACA subsidies, Medicare out-of-pocket cap among key elements of bill

August 08, 2022

The U.S. Senate’s $740 billion reconciliation package includes key health care provisions to ensure health coverage remains affordable for millions of Americans and to address the overall cost of care.

After weeks of negotiation, the legislation cleared the Senate by a 51–50 margin on Sunday afternoon and moves to the House for further consideration. It’s expected House lawmakers will return later this week to take up the bill.

The key health care provisions include:

• A three-year extension of the Affordable Care Act (ACA) subsidies that make coverage more affordable via the state and federal marketplaces.
• A requirement that drug manufacturers pay a rebate to the government if Medicare prices rise faster than inflation.
• A $2,000 cap for out-of-pocket drug costs for Medicare Part D beneficiaries.
• A new provision allowing Medicare to negotiate prices for some medications.

The legislation is available to review online.

Last month, HAP and a coalition of 21 provider groups sent a letter to Pennsylvania’s Congressional Delegation with a call to action to preserve the advanced premium tax credits that are set to expire this year. The three-year extension is an important step to ensure all Americans have access to the care they need to live healthy lives.

“Over the past two years of the pandemic, millions of individuals and families relied on care covered by plans purchased through the ACA’s marketplaces to stay healthy and address health challenges,” the letter said.

HAP continues to advocate for resources at the state and federal level that ensure that our hospitals have the resources they need to serve their communities.

For questions about the reconciliation package, contact John Myers, HAP’s vice president, federal advocacy.