HR 5376 of the 117th Congress was passed by the Senate on 8/7/2022 and signed by President Biden on 8/16/2022.
Summary: The Act will make a historic down payment on deficit reduction to fight inflation, invest in domestic energy production and manufacturing, and reduce carbon emissions by roughly 40% by 2030. The bill will also finally allow Medicare to negotiate for prescription drug prices and extend the expanded Affordable Care Act program for three years, through 2025.
Additionally, the agreement calls for comprehensive Permitting reform legislation to be passed before the end of the fiscal year. Permitting reform is essential to unlocking domestic energy and transmission projects, which will lower costs for consumers and help us meet our long-term emissions goals.
The top line estimates show investments of $437B, revenue raised at $737B totaling over $300B in deficit reduction. Healthcare will include $64B in an Affordable Care Act Extension for the next 3 years.
The Inflation Reduction Act will lower costs for families, combat the climate crisis, reduce the deficit, and finally ask the largest corporations to pay their fair share. President Biden and Congressional Democrats have worked together to deliver a historic legislative achievement that defeats special interests, delivers for American families, and grows the economy from the bottom up and middle out.
Cutting Prescription Drug Cost
- Today, Americans pay two to three times what citizens of other countries pay for prescription drugs
- 5-7 million Medicare beneficiaries could see their prescription drug costs go down because of the provision allowing Medicare to negotiate prescription drug costs.
- 50 million Americans with Medicare Part D will have the peace of mind knowing their costs at the pharmacy are capped at $2,000 per year, directly benefiting about 1.4 million beneficiaries each year.
- 3.3 million Medicare beneficiaries with diabetes will benefit from a guarantee that their insulin costs are capped at $35 for a month’s supply.
Lowering Health Care Costs
- 13 million Americans will continue to save an average of $800 per year on health insurance premiums
- 3 million more Americans will have health insurance than without the law.
- The uninsured rate is at an all-time low of 8%, which the historic law will build on.