President Joe Biden touted the $740 billion spending bill Democrats dubbed the Inflation Reduction Act, claiming during his State of the Union address Tuesday night that the new law will decrease health care costs.
“With the Inflation Reduction Act that I signed into law, we’re taking on powerful interests to bring your health care costs down so you can sleep better at night,” the president said. “You know, we pay more for prescription drugs than any major country on Earth.”
Biden said big pharmaceutical companies could no longer make record profits by hiking up prices.
“This law also caps out-of-pocket drug costs for seniors on Medicare at a maximum $2,000 per year when there are in fact many drugs, like expensive cancer drugs, that can cost up to $10,000, $12,000, and $14,000 a year,” Biden said. “If drug prices rise faster than inflation, drug companies will have to pay Medicare back the difference.”
Biden later added:
Now, some members here are threatening to repeal the Inflation Reduction Act. … Make no mistake, if you try to do anything to raise the cost of prescription drugs, I will veto it.
I’m pleased to say that more Americans have health insurance now than ever in history.
A record 16 million people are enrolled under the Affordable Care Act. Thanks to the law I signed last year, millions are saving $800 a year on their premiums.
However, the president left out potential increases that could result from the legislation.
The so-called Inflation Reduction Act would likely increase taxpayer costs by $248 billion over the next decade, and contribute to higher insurance prices, all at your expense through more Obamacare subsidies.
The bill ensured the federal government could negotiate drug prices. However, that did not reduce the real costs associated with producing medicine, likely to be passed on to consumers.
Also, extending Obamacare subsidies will likely have little effect on the premiums that insurers charge.
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