ELV · 10-Q · 2026Q2 · Full report

IRA Drug & Subsidy Impacts

Elevance Health, Inc. · 2026-07-15 · Importance 69 · Surprise 76

The Inflation Reduction Act (IRA) of 2022 contains drug pricing and tax provisions (including limited Medicare drug price negotiation beginning in 2026, Medicare Part D redesign, inflation-based manufacturer rebates, insulin caps and tax changes) that have and will continue to affect the company. Elevance cites the IRA's extension of enhanced Advance Premium Tax Credits (APTCs) through 2025 and notes the APTCs expired December 31, 2025; ensuing premium increases for previously subsidized individuals have impacted Individual market enrollment. The company also highlights other IRA effects (corporate alternative minimum tax and an excise on repurchases) that affect financial and tax planning. These policy changes have driven enrollment and morbidity shifts that influence medical cost trend and pricing decisions across its plan products.