President Biden officially signed into action the Inflation Reduction Act on August 16. While the act aims to fight inflation and build a better economy – what do we know about its direct impact on Latinos?
To start off, according to The White House official fact sheet, there are three main points that this act will reinforce. They aim to lower health care costs, fight climate change and lower energy costs, and make the tax code “fairer.”
But what’s that mean to our local community? Here are some of the highlights of the breakdown.
Ojo: If you or your senior loved ones are diabetic, take a look at the first point.
The Inflation Reduction Act will lower health care expenses, including insulin costs
The Inflation Reduction Act also referred to as IRA, will lower health care costs. This includes prescribed medicine costs and aims to expand health care insurance to Latino families, per this statement. “The Inflation Reduction Act will help close the gap in access to medication by improving prescription drug coverage and lowering drug prices in Medicare.”
This translates to putting a limit on the amount of money that seniors spend on prescription drugs – the cap will be $2,000 a year. For those who are diabetic, this will also put a cap on the expenses that seniors (65 years or older) will have to pay for insulin (the cap will be $35 for a month’s supply.) It will provide access to free vaccines for those who have access to Medicare and will also lower other prescription medicine by “allowing Medicare to negotiate the price of high-cost drugs. Drug manufacturers will be required to pay Medicare a rebate when they raise prices faster than inflation.”
Aims to lower monthly health care premiums
According to the press statement, “The Inflation Reduction Act locks in lower monthly premiums – 80 percent of uninsured Latinos had access to a plan for $50 or less each month and 69 percent could find a plan for $0 a month in 2021.” Here’s more information on Medicare.
It will give tax breaks to those who are more energy efficient
The IRA also aims to tackle climate change and lower energy costs. “Inflation Reduction Act will make it more affordable for families to purchase energy efficient and electric appliances when they need to replace everyday home appliances and equipment. And, these appliances will save families money on their utility bills in the long run.”
When done correctly, households can now save up to $1,000 per year through these “clean energy tax” credits.
Read all the information provided by The White House Communications Department here.