Sherrill Celebrates Lower Healthcare Costs and Clean Energy Growth One Year Since the Signing of the Inflation Reduction Act
Parsippany, NJ — Congresswoman Mikie Sherrill (NJ-11) is highlighting the one year anniversary of the Inflation Reduction Act, which has brought down the cost of healthcare for New Jersey seniors and boosted the clean energy economy. Over the past year, inflation has fallen to 3.2%, compared to a high of 9.1% last June — and in the last two years, New Jersey has had the strongest overall manufacturing jobs growth since the 1990s.
“A year ago today, the Inflation Reduction became law, breaking decades of gridlock on lowering the cost of healthcare and energy for families. This legislation takes critical steps to address the economic and cost of living issues many New Jersey families face and invests in America to tackle the pressing environmental concerns we see every day by reducing our reliance on foreign oil and lowering our carbon emissions,” said Rep. Sherrill. “As a result of this bill, insulin is now capped at $35 for seniors — a policy many drug companies are today adopting for all patients, regardless of age. Clean energy tax credits are bringing down the cost of utilities and building a greener future, and private sector companies have already made investments of over $150 billion in clean energy production and manufacturing, and another $88 billion in electric vehicle and battery production. While we celebrate today’s anniversary, New Jersey can count on me to keep fighting for commonsense policies that make life more affordable and grow New Jersey’s economy for generations to come.”
Throughout her tenure in Congress, Rep. Sherrill has effectively worked closely with local, state, and national organizations and businesses to improve New Jersey’s economy, address the cost of healthcare, and invest in clean energy. On the anniversary of the Inflation Reduction Act, these organizations are praising its passage and impact on their goals and work.
“The Inflation Reduction Act promises to infuse new vigor into the U.S. clean energy manufacturing sector, with more work ahead. We see increased opportunities for New Jersey homeowners to power their homes with solar roofing products made in the USA, and for roofing contractors in the garden state to expand their businesses with solar,” said Martin DeBono, President of GAF Energy, sister company to GAF located in NJ-11.
“Based on the recent extreme weather we have experienced in New Jersey and across the country, it’s crystal clear that climate change is the number one environmental issue we are all facing today,” said Sally Rubin, Executive Director at the Great Swamp Watershed Association. “This investment to combat the climate crisis is necessary, encouraging, and an important step for our future.”
Background on the Inflation Reduction Act
Rep. Sherrill successfully fought for key priorities to reduce prices for New Jersey families within the Inflation Reduction Act. On top of that, this legislation takes a major step forward to ensure our country can meet its climate goals.
Lowers the Cost of Healthcare
Caps Medicare beneficiary out-of-pocket costs in Medicare Part D at $2,000, which will benefit about 46,000 New Jersey Medicare beneficiaries who would otherwise have out-of-pocket costs above the cap;
Allows Medicare to negotiate prices for high-cost drugs, which will lower costs for 5 to 7 million seniors and people with disabilities nationwide each year;
Requires companies to pay Medicare a rebate if they increase drug prices faster than inflation, which will reduce drug costs for millions of Americans;
Caps insulin copays for Medicare beneficiaries at $35 per month, which will reduce prices for the 77,000 New Jersey Medicare beneficiaries who use insulin;
Expands eligibility for full Medicare Part D Low-Income Subsidies to beneficiaries with incomes up to 150% of the poverty line, compared to the only partial subsidies currently available to people with incomes between 135% and 150% of the poverty line. About 10,000 New Jersey Medicare beneficiaries could receive additional subsidies from the expansion of this income eligibility;
Ends cost-sharing for vaccines in Medicare Part D, which will reduce costs for 89,000 New Jersey Medicare beneficiaries who receive a Part D vaccine each year;
Extends the American Rescue Plan’s expanded Affordable Care Act premium subsidies, which will save hundreds of dollars per year for 292,000 New Jerseyans and thousands of dollars per year for some middle-income older people who would otherwise face very high premiums;
A 60-year old New Jerseyan with an income of $60,000 will save $5,700/year (or 9.5% of their income) from this subsidy expansion, going from paying 18% of their income to the premium cap of 8.5%.
These subsidies will also allow 67,000 more New Jerseyans to access health insurance, which will save lives and keep people out of poverty.
Lowers the cost of energy
Provides tax credits worth $7,500 for new electric vehicles and $4,000 for used electric vehicles, as well as credits covering 30% of the costs to install solar panels and battery storage systems, make home improvements that reduce energy leakage, or upgrade heating and cooling equipment; and
Invests in wind and solar investment and production tax credits, which will drive down the cost of electricity by an average of 5-7% nationwide (or $170-$220 per household annually).
Addresses the climate crisis
The combined impact of the clean energy provisions within the Inflation Reduction Act is an estimated reduction in US greenhouse gas emissions of 10% in 2030, moving from a pre-IRA trajectory of emissions down 30% from 2005 levels to a post-IRA one down 40% from 2005 levels.
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