EXPLAINER-When will Americans feel the Inflation Reduction Act's impact?

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The $430 billion US Inflation Reduction Act, expected to pass in the House of Representative on Friday, aims to lower healthcare costs, promote clean energy and increase corporate taxes at a time when inflation is at its highest in decades.

HEALTHCARE + Affordable Care Act premiums: At the end of this year, 13 million Americans would have seen their Affordable Care Act premiums increase, after subsidies expanded in Covid-19 spending bills expired. The bill extends those subsidies until 2024, and President Joe Biden's Democrats say they will save each individual $800.

+ Lower drug prices: These won't be felt in American wallets until 2026. The US government will start negotiating the price charged for the top 10 most-used drugs with pharmaceutical companies in 2025. The US Treasury needs to write regulations on that income verification and the administration needs to specify exactly which vehicles qualify under battery sourcing and critical minerals rules.

 

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