Article Summary –
The Inflation Reduction Act (IRA) extended subsidies for Affordable Care Act health insurance, preventing 135,000 North Carolinians from losing coverage and reducing insulin costs for nearly 57,000 North Carolina seniors on Medicare to $35 per month. It also spurred $19.1 billion in clean energy investments in North Carolina, creating 11,850 new jobs and providing substantial rebates to households for adopting clean energy products, saving North Carolinians an average of $2,034 per household. Additionally, the IRA allowed Medicare to negotiate drug prices, expected to save taxpayers $6 billion in 2026 and reduce out-of-pocket costs for seniors by $1.5 billion.
The Inflation Reduction Act ensured that 135,000 North Carolinians kept their health insurance, reduced insulin costs for 57,000 seniors, and boosted clean energy jobs.
Two years ago today, the Inflation Reduction Act (IRA) was signed into law.
The legislation made the largest-ever investment to fight climate change, lowered health care costs, raised taxes on corporations, and increased IRS funding to target wealthy tax cheats.
Passed with only Democratic votes, every North Carolina Republican in Congress opposed it, despite its transformative economic and clean energy impacts.
Below are highlights of the IRA’s impact on North Carolina:
Lower health care and prescription drug costs
The Inflation Reduction Act extended subsidies making Affordable Care Act (ACA) plans more affordable for working- and middle-class families.
Introduced as part of Biden’s American Rescue Plan, these subsidies were extended through 2025 by the IRA.
Roughly 135,000 North Carolinians were set to lose coverage but retained insurance thanks to the IRA.
The IRA reformed Medicare to lower drug costs for over 1.6 million North Carolina seniors with Medicare Part D.
For example, vaccines under Medicare Part D are now free, and insulin costs are capped at $35 monthly.
Nearly 57,000 North Carolina seniors now pay no more than $35 per month for insulin.
Beginning in 2025, the IRA caps annual out-of-pocket drug costs at $2,000 for Medicare recipients, saving an estimated 662,600 North Carolina seniors $406 each annually, according to a US Department of Health and Human Services analysis.
The law also allows Medicare to negotiate prices for expensive drugs with pharmaceutical companies for the first time. On Thursday, the Biden-Harris administration announced new, lower prices for 10 widely-used drugs selected last year.
The negotiations, leveraging Medicare’s power, are expected to save taxpayers around $6 billion in 2026, reducing senior out-of-pocket costs by $1.5 billion.
Fighting climate change and saving families money on energy
Arguably the IRA’s most critical element is its provisions to reduce emissions causing climate change. The law establishes a mix of tax credits for companies and rebates for consumers to make clean energy technology cheaper.
By making clean energy—like solar, wind, and hydropower—cheaper, the IRA aims to hasten the transition from fossil fuels.
Manufacturers receive subsidies for electric vehicles (EVs) and renewable energy products, while utilities get credits for choosing solar and wind energy over fossil fuels.
As of 2024, the IRA has spurred $19.1 billion in new clean energy investments in North Carolina, creating 11,850 clean energy jobs, according to Climate Power.
In North Carolina, manufacturers have taken advantage of IRA incentives. For instance, Alpitronic America, Inc. announced a new facility in Charlotte, creating over 300 jobs. Atom Power is expanding in Huntersville, adding 205 jobs.
The IRA also provided $80 billion in financial rebates for households to adopt clean energy products like EVs, solar panels, and heat pumps.
More than three million American households utilized IRA subsidies last year, saving $8 billion combined. This includes 85,350 North Carolina households, saving $173 million or $2,034 per household on average.
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