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Quiz: How Much Do You Know About the Inflation Reduction Act?

The 2022 law includes big changes for Medicare, the ACA, energy efficiency and more

Dena Bunis,

AARP

En español

Published September 28, 2022

8 Questions

61df92e3-18ba-442b-893b-8658a8c19825

Quiz: How Much Do You Know About the Inflation Reduction Act?

[ {
  "question" : "The Inflation Reduction Act will cap annual out-of-pocket prescription drug costs for Medicare beneficiaries at:",
  "answers" : [ {
    "answer" : "$2,500",
    "correctAnswer" : false
  }, {
    "answer" : "$5,000",
    "correctAnswer" : false
  }, {
    "answer" : "$2,000",
    "correctAnswer" : true
  }, {
    "answer" : "$1,000",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "The new cap on out-of-pocket costs goes into effect in 2025.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Which one of these changes is not part of the Inflation Reduction Act?",
  "answers" : [ {
    "answer" : "Investing $369 billion over a decade in climate change and energy production",
    "correctAnswer" : false
  }, {
    "answer" : "Allowing Medicare for the first time to negotiate prices of some high-cost prescription drugs",
    "correctAnswer" : false
  }, {
    "answer" : "Spending $65 billion to return astronauts to the moon’s surface by 2025",
    "correctAnswer" : true
  }, {
    "answer" : "Providing $80 billion in additional funding to the IRS over 10 years",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "The main changes being implemented under the new law are focused on health care, climate, energy and taxes.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "How will the new law make insulin more affordable for some people with diabetes?",
  "answers" : [ {
    "answer" : "Monthly copays will be capped at $35 for all Americans with health insurance",
    "correctAnswer" : false
  }, {
    "answer" : "Insulin will be free for everyone on Medicare",
    "correctAnswer" : false
  }, {
    "answer" : "Monthly copays will be capped at $35 for Medicare enrollees",
    "correctAnswer" : true
  }, {
    "answer" : "The federal government will be authorized to import cheaper insulin from Canada",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "The $35 monthly cap on insulin copays, which goes into effect in 2023, applies to people with Medicare Part D coverage (through both original Medicare and Medicare Advantage).",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "Pharmaceutical companies will be penalized under the law if they raise their drug prices ...",
  "answers" : [ {
    "answer" : "More than 5 percent a year",
    "correctAnswer" : false
  }, {
    "answer" : "More than the general rate of inflation",
    "correctAnswer" : true
  }, {
    "answer" : "More than 10 percent a year",
    "correctAnswer" : false
  }, {
    "answer" : "Two or more times in a calendar year",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "Drugmakers who hike prices above the rate of general inflation will have to pay a rebate to Medicare equal to the difference between the inflation rate and the price increase of their drug. The rebate will go back to Medicare.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "True or false? Under the new law, tax credits for purchasing electric vehicles are only available to those who buy new EVs.",
  "answers" : [ {
    "answer" : "True",
    "correctAnswer" : false
  }, {
    "answer" : "False",
    "correctAnswer" : true
  } ],
  "multiSelect" : false,
  "explanation" : "Starting in 2024, the law allows a tax credit for certain used EVs purchased from dealers. The credit is equal to the lesser of 30 percent of the sale price or $4,000. The sale price can’t be more than $25,000, and the EV must be at least two years old.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "The new law set a minimum tax rate on certain corporations of …",
  "answers" : [ {
    "answer" : "5 percent",
    "correctAnswer" : false
  }, {
    "answer" : "10 percent",
    "correctAnswer" : false
  }, {
    "answer" : "15 percent",
    "correctAnswer" : true
  }, {
    "answer" : "50 percent",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "Broadly speaking, the new minimum tax rate applies to corporations with more than $1 billion in annual income.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "How will the new law make health insurance under the Affordable Care Act more economical?",
  "answers" : [ {
    "answer" : "No one’s premium can be more than 8.5 percent of their income",
    "correctAnswer" : false
  }, {
    "answer" : "Millions of Americans will avoid high premium increases because of expanded federal subsidies",
    "correctAnswer" : false
  }, {
    "answer" : "People with incomes below 150 percent of the federal poverty limit ($20,385 in 2022) will be eligible for zero-premium coverage",
    "correctAnswer" : false
  }, {
    "answer" : "All of the above",
    "correctAnswer" : true
  } ],
  "multiSelect" : false,
  "explanation" : "The expanded federal subsidies, set to expire in 2022, have been extended for three years, through 2025.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
}, {
  "question" : "When President Joe Biden signed the bill into law on Aug. 16, 2022, he gave the pen he used to:",
  "answers" : [ {
    "answer" : "House Speaker Nancy Pelosi",
    "correctAnswer" : false
  }, {
    "answer" : "West Virginia Sen. Joe Manchin",
    "correctAnswer" : true
  }, {
    "answer" : "Senate Majority Leader Chuck Schumer",
    "correctAnswer" : false
  }, {
    "answer" : "Arizona Sen. Kyrsten Sinema",
    "correctAnswer" : false
  } ],
  "multiSelect" : false,
  "explanation" : "In an evenly divided Senate, Manchin’s eventual support for the bill was essential to its passage.",
  "hint" : "",
  "hintLink" : "",
  "questionImgCaption" : "",
  "questionImgCredit" : ""
} ]

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Dena Bunis covers Medicare, health care, health policy and Congress. She also writes the Medicare Made Easy column for the AARP Bulletin. An award-winning journalist, Bunis spent decades working for metropolitan daily newspapers, including as Washington bureau chief for The Orange County Register and as a health policy and workplace writer for Newsday.

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Answers to common questions about how the new law affects drug prices, Medicare and more

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MEMBERS ONLY

Shopping & Groceries

Walmart+

$20 off a Walmart+ annual membership

Learn More

See more Shopping & Groceries offers >

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Health & Wellness

AARP® Staying Sharp®

Activities, recipes, challenges and more with full access to AARP Staying Sharp®

Learn More

See more Health & Wellness offers >

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