WASHINGTON—On Sunday, August 7, the U.S. Senate passed the Inflation Reduction Act to lower costs for people in Michigan and across the country.
“Price-gouging is taking a big chunk out of Americans’ wallets,” U.S. Senator Debbie Stabenow (D-MI) said.
“This bill takes on Big Pharma to lower prescription drug costs for Americans,” Stabenow added. “The over 2 million Michigan residents who rely on Medicare will see their prices drop because Medicare can finally negotiate with drug companies. The bill 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 bill is fully paid for and reduces the deficit by making corporations pay taxes like everyone else.”
The Inflation Reduction Act:
LOWERS HEALTH CARE COSTS
Prescription Drugs
The bill 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 bill 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.
Insulin Costs
One in every three Medicare beneficiaries has diabetes, according to the Department of Health and Human Services. The bill caps the out-of-pocket price of insulin for patients on Medicare to $35 per month.
Health Insurance Costs
The bill lowers costs for people who purchase insurance through the ACA marketplace.
CREATES NEW JOBS WHILE COMBATTING THE CLIMATE CRISIS
Jobs
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 bill to address our supply chain shortages and drive investment in clean energy and manufacturing. The bill includes important new tax credits for battery manufacturing, solar manufacturing, electric vehicles and other clean energy manufacturing. This bill ensures that America – not China – will lead the way in the clean energy revolution.
Support for Rural Communities
The bill 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 bill also lowers energy costs for rural families and businesses by investing in renewable energy.
Emissions Reduction
The bill 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.
