What is the Inflation Reduction Act of 2022? Is it just a lesson on being more careful when naming laws? Is it an inflation law, a climate law, or an insurance law? As with all laws, it’s complicated so here are three things you may find helpful in the new regulations.
- Drug costs for Medicare participants should be lower. Just not right away. Starting in 2026, Medicare can negotiate with pharmaceutical companies for 10 high-cost drugs. Insulin costs will be capped at $35/month and, starting in 2025, there will be a $2,000/year out of pocket cap for drugs for Medicare recipients.
- Tax credits for clean energy choices for consumers (businesses, too, but this blog focuses more on individuals). Been wanting to put solar on your roof? 30% tax credit through 2032. Want help buying that new Nissan Leaf? Tax credits for up to $7,500 on new electric vehicles and $4,000 on used.
- Do you buy medical insurance on an exchange (through the Affordable Care Act)? If so, you’ll be glad to hear that premium assistance has been extended through 2025. Eligibility for premium assistance has also been expanded to include more middle-class families (those making less than 400% above the federal poverty level).
There’s also a bunch of stuff about corporate climate change regulations, 15% minimum corporate tax rates certain businesses, and even some western wildfire mitigation. For more information, see the link below.