Earlier this week the President signed into law the Inflation Reduction Act. Without pontificating on its virtues or short comings, here is how the Inflation Reduction Act breaks down by the numbers:
Cutting Prescription Drug Cost
As estimated by the office of Management and Budget:
5-7 million Medicare beneficiaries could see their prescription drug costs reduced because of the provision allowing Medicare to negotiate prescription drug costs;
50 million Americans with Medicare Part D will have their costs at the pharmacy capped at $2,000 per year, directly benefiting about 1.4 million beneficiaries each year;
3.3 million Medicare beneficiaries with diabetes will benefit from a guarantee that their insulin costs are capped at $35 for a month’s supply.
Lowering Health Care Costs – per the White House:
13 million Americans will continue to save an average of $800 per year on health insurance premiums under Obama Care;
3 million more Americans will be eligible for health insurance; and
The current uninsured rate is at an all-time low of 8%.
Lowering Energy Costs
$14,000 in direct consumer rebates for families to buy heat pumps and other energy efficient home appliances;
a 30% tax credit for solar on roofs program, saving families and estimated $9,000 over the life of the system or at least $300 per year;
Up to $7,500 in tax credits for new electric vehicles and $4,000 for used electric vehicles, helping families save $950 per year – noting there are requirements that various parts of the car be made in America which at this time is not part of the supply chain;
The Administration has stated that their goal in the IRA is to power homes, businesses, and communities with much more clean energy by 2030, including adding:
950 million solar panels;
120,000 wind turbines;
2,300 grid-scale battery plants;
Advance cost-saving clean energy projects at rural electric cooperatives serving 42 million people;
Strengthen climate resilience and protect nearly 2 million acres of national forests; and
Creating millions of good-paying jobs making clean energy in America.
Reducing Harmful Pollution
The hope is that through these actions, the IRA will help reduce greenhouse gas emissions by about 1 gigaton in 2030, or a billion metric tons – 10 times more climate impact than any other single piece of legislation ever enacted.
Moreover, the Administration is incenting carbon capture technology in order to deploy clean energy and reduce particle pollution from fossil fuels to avoid up to 3,900 premature deaths and up to 100,000 asthma attacks annually by 2030.
Fuel For Thought – while some argue that the IRA is too expensive and that carbon reduction goals are not necessary, others view these steps as a good step but not nearly enough to reduce green house gas emissions as set forth in the Paris Accord by 2030. Wherever you come out on this topic, taking steps to reduce our own personal greenhouse gas impact are within our own power. As such, if you don’t believe that humankind contributes to green house gas impacts and global warming then try doing something to help your own personal reduction to support those that really believe this is a serious issue. Your own reduction cannot hurt and it just might help if we all engage and look to help.
Duane Morris has an active ESG and Sustainability Team to help organizations and individuals plan, respond to, and execute on your Sustainability and ESG planning and initiatives. We would be happy to discussion your proposed project and how the Inflation Reduction Act might apply with you. For more information or if you have any questions about this post, please contact Brad A. Molotsky, Jeff Hamera, Nanette Heide, Joel Ephross, Jolie-Anne Ainsley, Robert Montejo, Seth Cooley or David Amerikaner or the attorney in the firm with whom you in regular contact or the attorney in the firm with whom you are regularly in contact.