On Aug. 16, President Biden signed the Inflation Reduction Act into law. The act contains healthcare reforms, tax changes, and environmental policy provisions. It also affects several layers of the U.S. healthcare ecosystem with major implications for the Medicare Advantage and Medicare Part D programs. This article focuses on the relevant changes to Medicare, discussing the following: 

• Key healthcare provisions of the act 
• Potential implications to stakeholders within the healthcare and pharmaceutical sectors 
• Next steps and a timetable of changes in the coming years