Hassan: Inflation Reduction Act lowers drug costs, fights inflation, reduces the deficit

Families across our state are feeling the impact of out of control drug prices. For decades, Big Pharma has called the shots on Capitol Hill — sending more than two lobbyists for every one member of Congress — in order to keep you paying sky-high drug prices.

The good news is that relief is on the way with passage of the Inflation Reduction Act, a bill that I am proud to have worked on and voted for in the Senate. Our bill lowers prescription drug and energy costs in a way that fights inflation and reduces the deficit.

Reducing prescription drug costs

First and foremost, our bill will lead to Granite Staters paying less at the pharmacy counter.

It finally allows Medicare to negotiate the price of prescription drugs, which is a priority that I have been pushing for years, because we know that by putting pressure on Big Pharma we can bring down the cost of prescription drugs for Medicare patients and for consumers across the board. This bill also caps out-of-pocket expenses for Medicare Part D prescription drugs at $2,000 a year. As the AARP New Hampshire State Director said earlier this week, “Enacting this bill is a major victory for American families who are struggling with their health care costs.”

In addition, our bill continues efforts to lower health insurance premiums under the Affordable Care Act. Due to this measure, Granite Staters who get their health insurance on the Affordable Care Act marketplace are, on average, saving nearly $1,000 per person per year.

We know how important access to affordable, high quality health care is, and the reforms in this legislation will help address this urgent need.

Bringing down energy costs and combating climate change

In addition to critical reforms that bring down health care costs, the Inflation Reduction Act also takes important steps to lower costs in other areas, including energy costs – and does so in a way that increases our energy independence and addresses the existential threat of climate change.

At a time when Americans have seen their heating and cooling bills soar and high prices at the pump, our legislation takes meaningful steps to lower energy costs by investing in clean energy technology, and it will also create clean energy jobs. And the Inflation Reduction Act includes a bipartisan measure that Senator Susan Collins (R-ME) and I previously introduced, providing a tax cut to families to help them lower their energy bills when they make energy-efficient home upgrades. This effectively lowers the cost, for instance, of updating an HVAC system or better insulating windows or doors.

Put together, these measures will help tackle the climate change crisis, and will put the United States on a path to lower carbon emissions by roughly 40 percent by 2030. In doing so, we also become more energy independent, so that we are not reliant on Big Oil or foreign countries.

Strengthening our economy

Our bill also strengthens our economy overall, helping to further fuel American innovation.

The bill builds on a policy measure that I successfully pushed for as Governor to support innovative businesses and entrepreneurs by doubling the research and development tax credit. Expanding this tax cut will help more small businesses and startups advance their current efforts and develop the technology of the future.

Critically, the Inflation Reduction Act achieves all of its goals in a way that brings down the deficit and fights inflation.

Don’t just take my word for it – economists, including Treasury Secretaries who served under both Republican and Democratic administrations, have made clear that our bill will help address the inflation that is straining families in New Hampshire and across the country. One hundred and twenty-six leading economists recently wrote in support of the bill, stating, “These investments will fight inflation and lower costs for American families while setting the stage for strong, stable, and broadly-shared long-term economic growth.”

I was proud to work with my colleagues to get this critical legislation over the finish line in the Senate. I am looking forward to the President signing this bill into law so that our country takes historic actions to address the challenges that Granite Staters are facing. With this measure, we lower prescription drug and energy costs and jumpstart a brighter, stronger future for our economy.

Democrat Maggie Hassan represents New Hampshire in the U.S. Senate.

This article originally appeared on Portsmouth Herald: Hassan: IRA lowers drug costs, fights inflation, reduces the deficit