These 3 big pieces of Biden’s agenda kick off Jan. 1

Big pieces of the landmark Inflation Reduction Act that President Biden signed into law four and a half months ago are set to come online in 2023.

On Jan. 1, an array of the law’s provisions will touch many corners of American life from the costs of prescription drug costs and a new corporate minimum tax to a host of new tax credits as part of Washington’s biggest attempt to turn the tide on climate change.

“We’re just getting started,” President Biden recently said in a speech, which previewed some of the changes, adding that the effects will be felt “from healthcare to clean energy.”

Here are some of the key provisions in the law set to take effect.

Health care changes that represent ‘the most aggressive action in a generation’

Two much-touted portions of the bill concerning health care start on Jan. 1.

The soon-to-be implemented changes include a new inflation cap that limits how much drug manufacturers can change the price of prescription drugs and new rules that insure that people enrolled in a Medicare prescription drug plan don’t pay more than $35 for a month’s supply of insulin.

The law also will allow many Medicare Part D beneficiaries to receive vaccines for $0 in the new year.

These changes are often discussed by President Biden who earlier this month said “it’s real savings to people, and it’s just about to kick in.”

Another key provision of the bill allows Medicare to negotiate for prescription drug prices beginning in 2023. The previous law prohibited Medicare from intervening in the talks between drug makers and health plan sponsors. While these changes are projected to save Medicare nearly $100 billion over the coming decade, the effects of the renegotiated prices aren’t expected to be felt by seniors until 2026.

The law also institutes a cap on out-of-pocket expenses for many Medicare recipients, but those won’t begin until 2024. In 2025, it will fully kick in with a hard cap on out-of-pocket expenses of $2,000 per year that will be indexed to inflation afterward.