Could you see an impact from the Inflation Reduction Act?

The bill is heading towards President Joe Biden’s desk – this is what that could mean for your wallet

LYNCHBURG, Va. – The Inflation Reduction Act aims to lower the national deficit, raise taxes on some major companies, secure the largest-ever investment to tackle climate change and lower healthcare costs.

The legislation is heading towards President Joe Biden’s desk, so what could this mean for your wallet?

Nancy Hubbard, Dean of Business for the University of Lynchburg, said you won’t notice a big impact right away.

“A lot of the provisions will not go into effect until 2025,” said Hubbard.

Once that happens, Hubbard said a major difference will be in prescription costs.

“What this bill allows is for Medicare to negotiate directly with the drug companies to lower some of those prices,” said Hubbard.

Hubbard said that should lead to huge savings for millions of Americans on Medicare who exceed a $2,000 limit for prescription drugs.

“What will happen is that cap will be capped at $2,000 per year, per person,” said Hubbard.

The bill will also have a long-term impact to combat climate change.

“Solar energy, clean energy, and renewable energy will have tax provisions continued going forward, to support people buying clean cars, installing energy-efficient sources for their homes,” said Hubbard.

Hubbard said we’ll see a short-term impact of gas prices continuing to fall, but that’s only because we’re heading out of the summer months.

About the Author

Tim Harfmann joined the 10 News team in September 2020 and works at the station's Lynchburg bureau.

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