TUCKAHOE, VIRGINIA – Friday marked the second anniversary of the enactment of the Inflation Reduction Act, signed by President Joe Biden in 2022 to ease the economic impact of the COVID-19 pandemic on Americans.
That anniversary came just after the Consumer Price Index released a report that showed the U.S. annual rate of inflation at its lowest point since 2021.
Virginia Sen. Tim Kaine, one of the U.S. Senators to vote for the Inflation Reduction Act who is up for reelection, marked the occasion with a discussion on Thursday at a library in Tuckahoe on the effects of the legislation on medication prices. Vice President Kamala Harris cast the tie breaking vote to pass the bill in 51-50 in August 2022.
Through the legislation, people on Medicare Part D plans will see their out-of-pocket expenses for medication capped at $2,000 annually in January 2025. The act also allows Medicare to negotiate prices for 10 commonly used medications, which has resulted in lower costs according to the U.S. Department of Health and Human Services. Americans also have access to tax credits through the legislation that lower the cost of insurance premiums when purchasing coverage through the marketplace.
The Inflation Reduction Act also expanded on a Trump Administration plan announced in May 2020, which capped the cost of insulin at $35 per month for some Medicare Part D enrollees, to include all Medicare Part D enrollees.
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“The vast majority of insulin that’s now sold in the United States to people not on Medicare, to younger people, is now also sold at $35,” Kaine said.
In Virginia, about 314,000 Medicare Part D enrollees are expected to save more than $83 million in 2024 under the legislation, according to the U.S. Department of Health and Human Services.
Virginians share their stories
Dr. Scott Kizner, 66, of Richmond, was a superintendent of public schools when he was diagnosed with a terminal blood and bone cancer four years ago. His treatment consisted of chemotherapy and medication. One of his medications cost $900 per pill, and he needed to take 21 of those pills per month. Kizner retired in 2021 to focus on fighting cancer, but his wife continues to work in Spotsylvania Public schools to maintain their insurance. They are both grandparents.
“The cost of medication was something that was just too much for us,” he said. “You should not have to make choices to sacrifice your health.”
Thanks to treatment, Kizner is now in deep remission and he and his wife are looking forward to enjoying retirement soon.
Chris Graham, 52, of Richmond, was able to successfully manage his type 2 diabetes thanks to insulin and a litany of other medications. Graham, a historian, was laid off from his job in April and lost his health insurance.
“Thankfully I was able to get on an affordable plan,” he said. “I only pay $203 a month for my premium, thanks to the premium tax credits which are made possible because of the Inflation Reduction Act.”
Inflation Reduction Act as a political football
In July, Kaine’s Republican opponent, retired Navy Capt. Hung Cao, told ABC 7 News in July that, if in office, he wouldn’t have voted for the Inflation Reduction Act.
“I would never vote for that Inflation Reduction Act. Because I feel like it actually did the opposite, right? It didn’t do anything to help inflation,” Cao said.
In a press briefing after Thursday’s event, Kaine pushed back against Cao’s characterization of the legislation.
“I don’t know of anybody else who attributes inflation to the IRA,” he said. “Inflation definitely is a global phenomenon everywhere after COVID, the U.S. has probably dealt with it better than most nations but it’s still a challenge, we’ve got to do more.”
