House Passes Inflation Reduction Act of 2022

August 15, 2022

The House of Representatives on Friday passed the Inflation Reduction Act of 2022, a health care, climate, and tax bill that Senate Democrats passed earlier this month by a 51-50 vote along party lines, with Vice President Kamala Harris casting the tie-breaking vote. The bill, which Congressional leaders estimate would reduce the Federal deficit by $300 billion, was considered under the budget reconciliation process that requires 50 votes in the Senate and a simple majority in the House.

The Inflation Reduction Act of 2022 extends the enhanced Affordable Care Act premium tax credits, enacted in the American Rescue Plan Act of 2021, for three additional years through calendar year 2025. It also establishes the Drug Price Negotiation Program and requires the Department of Health and Human Services to negotiate prices for some high-cost drugs covered under Medicare Part B and Part D. In addition, the bill requires drug companies to pay rebates if drug prices rise faster than inflation for Medicare sales only. The bill also creates a $2,000 out-of-pocket cap for Part D beneficiaries, expands income eligibility for full benefits under the Medicare D Low-Income Subsidy Program, and eliminates cost sharing for adult vaccines covered under Medicare Part D. The bill would cap cost sharing for insulin products to no more than $35 per month in the Medicare program only.

The bill includes several energy and climate provisions that may benefit not-for-profit hospitals, particularly those serving low-income and disadvantaged communities. It provides $27 billion for the Greenhouse Gas Reduction Fund. The bill also provides $3 billion in competitive three-year grants to states, tribes, municipalities, and community-based not-for-profit organizations for financial and technical assistance to address clean air and climate pollution in disadvantaged communities. Finally, the bill provides $5 billion in competitive grants to states, territories, tribes, and municipalities to develop and implement greenhouse gas emission reduction plans.

GNYHA supports the bill’s provisions that would lower health care costs for individuals and families. We congratulate Senate Majority Leader Chuck Schumer (D-NY) for successfully leading the Democratic caucus to pass the bill.