Friday marked two years since the Inflation Reduction Act, signed into law by President Joe Biden in 2022 to ease the economic impact of the COVID-19 pandemic on Americans, went into effect.
This anniversary comes just after the Consumer Price Index released a report showing that the annual rate of inflation in the U.S. hit its lowest level since 2021.
Virginia Sen. Tim Kaine, one of the U.S. senators who voted in favor of the Inflation Reduction Act who is up for re-election, marked the occasion by hosting a discussion Thursday at the library in Tuckahoe about its impact on drug prices. Vice President Kamala Harris voted in favor of the legislation 51-50 in August 2022.
Under the act, drug costs under the Medicare Part D program will be capped to $2,000 per year starting in January 2025. The law also allows Medicare to negotiate prices for 10 commonly used drugs, which has resulted in lower costs, according to the U.S. Department of Health and Human Services. Americans also have access to tax credits that lower the cost of premiums when buying insurance through the marketplace.
The Inflation Reduction Act also expanded the Trump administration's plan, announced in May 2020, that capped insulin costs at $35 a month for some Medicare Part D enrollees, and extended it to all Medicare Part D enrollees.
"The vast majority of insulin that is now sold in the U.S. to people outside of Medicare, young adults, is now also sold at $35," Kane said.
In Virginia, about 314,000 Medicare Part D enrollees will save more than $83 million in 2024, according to the U.S. Department of Health and Human Services.
Virginians share their stories
Dr. Scott Kizner, 66, of Richmond, was superintendent of public schools when he was diagnosed with end-stage blood and bone cancer four years ago. His treatment consisted of chemotherapy and drugs. One of the medications cost $900 a pill and he needed to take 21 pills a month. Kizner retired in 2021 to focus on fighting cancer, but his wife continues to work for Spotsylvania Public Schools to maintain their insurance. They are both grandparents.
"The cost of medication was too high for us," he said. "You shouldn't have to make a choice to sacrifice your health."
Thanks to treatment, Kizner is now in deep remission, and he and his wife want to retire soon.
Chris Graham, 52, of Richmond, was successfully managing his type 2 diabetes with insulin and a host of other medications. Graham, a historian, was laid off from his job in April and lost his health insurance.
"Fortunately, I was able to find an affordable plan," he said. "I pay only $203 a month thanks to the premium tax credits made possible by the Inflation Reduction Act."
The Inflation Reduction Act as a political soccer
In July, Kaine's Republican rival, retired Navy Capt. Hung Cao, told ABC 7 News that if he were in office, he would not have voted for the Inflation Reduction Act.
"I would never vote for this inflation-reducing legislation. Because it seems to me that he actually did the opposite, right? It has done nothing to help inflation," Cao said.
In a press briefing after Thursday's event, Kaine countered Cao's characterization of the law.
"I don't know anyone who attributes inflation to IRAs," he said. "Inflation is certainly a global phenomenon, and after COVID the U.S. has probably handled it better than most countries, but it's still a problem and we need to do more."