President Biden Signs Historic Bill to Lower Costs for Americans
The Inflation Reduction Act will cut prescription drug costs, lower energy costs, and create millions of new jobsTuesday, August 16, 2022
WASHINGTON—President Biden signed the Inflation Reduction Act into law today to lower costs for people in Michigan and across the country. Senator Stabenow led the effort to include provisions to cut the cost of prescription drugs, combat the climate crisis, and create new good-paying clean energy jobs in Michigan.
“This is a historic day for people in Michigan and across the country. Price-gouging is taking a big chunk out of Americans’ wallets. This law takes on Big Pharma to lower prescription drug costs for Americans. The over 2 million Michigan residents who rely on Medicare will see their prices drop because Medicare can finally negotiate with drug companies. The law also takes on Big Oil to lower energy costs and tackle the climate crisis while creating good-paying jobs and ensuring we lead the clean energy future. And the great news is that this law is fully paid for and reduces the deficit by making corporations pay taxes like everyone else,” said Senator Stabenow.
The Inflation Reduction Act:
LOWERS HEALTH CARE COSTS
The law empowers Medicare to negotiate prescription drug prices, which will cut costs dramatically for the over 2 million Michigan residents who rely on Medicare. It caps Medicare beneficiaries’ out-of-pocket costs at $2,000 per year and allows people to spread their costs over monthly payments. It increases help for low-income seniors on Medicare, and provides free Medicare coverage of all vaccines. The law also penalizes drug companies for price hikes in Medicare that exceed the rate of inflation by requiring drug companies to pay the Medicare program for excess increases.
The law caps the out-of-pocket price of insulin for patients on Medicare to $35 per month. One in every three Medicare beneficiaries has diabetes, according to the Department of Health and Human Services.
Health Insurance Costs
The law lowers costs for people who purchase insurance through the ACA marketplace.
CREATES NEW JOBS WHILE COMBATTING THE CLIMATE CRISIS
An analysis found the Inflation Reduction Act will create more than 9 million jobs over the next decade.
Clean Energy Tax Credits
Senator Stabenow led efforts to secure key provisions in the law to address our supply chain shortages and drive investment in clean energy and manufacturing. The law includes important new tax credits for battery manufacturing, solar manufacturing, electric vehicles, and other clean energy manufacturing. This law ensures that America – not China – will lead the way in the clean energy revolution.
Support for Rural Communities
The law gives farmers the resources they need to tackle the climate crisis by reducing carbon pollution and other greenhouse gas emissions. Farmers, foresters, and rural communities will have the necessary tools to be a part of the solution and invest in good-paying clean energy jobs to grow their local economies.
The law also lowers energy costs for rural families and businesses by investing in renewable energy.
The law is the strongest federal climate legislation in U.S. history and will put the country on track to reduce emissions by about 40% in the next 8 years.
REDUCES THE DEFICIT BY CLOSING CORPORATE TAX LOOPHOLES
These critical investments reduce the deficit by curbing price-gouging and making billion-dollar corporations pay taxes like everyone else.
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