Source: The White House
President Biden has made lowering costs for working families a top priority. Through the Inflation Reduction Act, President Biden is delivering on his promise to lower prescription drug costs, make health insurance more affordable, and help lower costs for working families.
As a reminder, the White House recently released an Inflation Reduction Act Guidebook to help communities and homeowners better understand how they can benefit from these investments and unlock the full potential of the law.
The following provisions of the Inflation Reduction Act went into effect on January 1st:
LOWERING HEALTH CARE COSTS:
- FREE VACCINES: More recommended vaccines are now free of charge for people with Medicare prescription drug coverage.
- Most notably, the list of vaccines now includes shingles and Tdap. This provides significant savings for Medicare enrollees, as the shingles vaccine alone can cost up to a few hundred dollars.
- INSULIN CAP: A month’s supply of each covered insulin will now be capped at $35 and there will be no deductible for these products for people with Medicare prescription drug coverage.
- More than a million Medicare beneficiaries with diabetes will benefit from this $35 cap per month per covered prescription.
- Help is available for people with Medicare who take insulin, and we encourage them to call 1-800-MEDICARE if they need assistance in exploring options to find the plan that works best for them.
- REBATES FOR DRUG MANUFACTURERS INCREASING PRICES FASTER THAN INFLATION: Manufacturers will need to pay rebates to Medicare if their price increases for certain drugs exceed inflation.
LOWER ENERGY COSTS:
- INCENTIVES TO LOWER ENERGY COSTS:Several new clean energy tax credits have gone into effect for families that want to make energy efficiency upgrades and install rooftop solar, helping them save money on their energy bills each month.
- As of Sunday, families, homeowners, and renters that want to install heat pumps, solar panels, better insulation, or energy efficient appliances, can now access the cost saving benefits of clean energy.
- CLEAN ENERGY VEHICLES TAX CREDIT: A new tax credit to buy new or used clean vehicles has gone into effect, for drivers that no longer want to worry about the price at the pump.
- Treasury released a list of vehicles that are eligible for the new tax credits beginning on January 1, 2023, as well as a helpful FAQ for consumers. This list will continue to be updated in the coming days and weeks.