Inflation Reduction Act PASSES the House. BUT! You may not see the benefits for a while.

August 12, 2022

The Inflation Reduction Act is now on its way to President Biden to be signed it into law. But you probably won’t feel the impact of it for a while. I’m going to explain why in a second.

First, the House just passed the massive climate, healthcare and tax bill. Final vote 220 to 204. All Democrats voted yes. All Republicans voted no. Four Republicans did not vote.

I know you’re concerned about the IRS money in this bill, so I made a completely separate video about that and it’s already posted.

But back to how this bill may impact you. First you have to understand… this bill does a ton of different things but it’s going to take a while for you to feel most of it. I broke down all the specifics of this bill in this video I posted last week. For today, I’m going to assume you already watched it.

So today, I’m going to just break down this bill into two general columns –column one– items in this bill that will bring money into the government and column two– items in this bill the government will spend money on.

The things that will bring money in to the government will total about $790 billion over 10 years. Then the government will spend that $790 billion on items in three separate buckets. Bucket one is climate focused policies, bucket two is healthcare and bucket three is federal deficit reduction.

Yes, this bill is called the inflation reduction act but whether it actually brings inflation down depends on which economist you talk to. But for lots of Americans it will bring down some real costs of living expenses  … eventually.

For example —

Yes there’s a $2000 dollar cap on out-of-pocket spending for Medicare recipients, but not until 2025. It also caps the monthly cost of insulin for seniors on Medicare at $35 a month. That starts next year.

Yes, this bill gives Medicare the power to negotiate drug prices with pharmaceutical companies which will bring down costs not only for Medicare recipients – but also for the federal government which means American taxpayers. But that negotiating power doesn’t start until 2026 and it only applies to 10 specific drugs to begin with.

Yes, this bill provides tax credits for electric cars, solar panels and more. But those don’t start until next year.

But there are some things that will happen immediately. If you get healthcare through the affordable care act, and financially qualify, the subsidies you’ve been getting for the last year, will continue for three more years. That starts when open enrollment starts in November.