If you’re like the tens of millions of Americans that has been struggling with increasing prices, then you might be happy to hear that the Inflation Reduction Act has been passed to try and lower multiple critical expenses that are hurting your wallet. With over $300 billion in spending passed to help you, you still might not know exactly what that means. If you’re interested in learning how you can save money with the Inflation Reduction Act, keep reading!
Lower Health Care Costs
One of the core aspects of the bill is lowering healthcare costs, including insulin costs and healthcare premiums. Over 13 million Americans can expect to see lowered healthcare costs as soon as this year, with caps on critical medication like Insulin for those on Medicare and lowered prescription costs for many across the board. This is a major boost for many Americans, as healthcare and other expenses are generally non-negotiable and unable to be delayed for serious and chronic conditions. Affordable Care Act subsidies have been expanded, and Medicare is now able to fully negotiate to lower prescription prices. It also includes a $2,000 out of pocket cap for chronic conditions – talk about savings!
Lower Energy Costs
With energy costs skyrocketing as oil becomes harder to acquire and process, as well as the hot summer months, utility expenses have become a major source of strain on American family budgets. With the goal of reducing carbon emissions and increasing use of green energy, the plan is to pass the savings from renewable energy onto the American consumer while increasing our energy independence. With a focus on transitioning to cleaner energy and providing savings, this effect may take longer to come in place, but will almost certainly lower long-term costs for the average household.
Lower Inflation
Like the name of the bill implies, one of the core elements is trying to lower the high levels of inflation that are putting strain on your wallet. Some of this is because of elements we already discussed, such as lower utility costs and a decrease in prescription drug prices, but it doesn’t stop there. With a revision in America’s corporate tax structure and how the government is planning on handling COVID Relief Fraud, it is expected to lower the deficit and allow the government to focus more on passing those savings onto the consumer. With a healthier broad economy, it’s easier to lower costs and keep families happy. That said, it’s expected that many of these effects are more long-term in nature.
As with any bill, there is likely to be endless debate over exactly how much money this will put back in your wallet. But it’s safe to say if you’ve faced healthcare or utility costs that are draining your wallet, you’ll likely see some relief sooner rather than later. Check out our other articles for more information on inflation, how it might affect you, and what you can do to fight it!
