Article Summary –
Wisconsin Republican U.S. Rep. Tom Tiffany and 15 other House Republicans have introduced a bill to repeal the Inflation Reduction Act of 2022, which provided significant investments in energy infrastructure, modernized IRS operations, and included measures to reduce prescription drug costs, benefiting millions of Americans. Despite previous efforts to repeal the act being unsuccessful due to Democratic control, the current Republican majority in the Senate and potential new presidency increases the likelihood of repeal, although this could lead to increased costs for American consumers. The Brookings Institution has highlighted that while repealing the act might reduce government expenditures, it could ultimately result in higher economic costs, contrasting with Republican claims that repealing the act would lower living costs.
Wisconsin Republican U.S. Rep. Tom Tiffany and 15 other House Republicans have proposed a bill to fully repeal the Inflation Reduction Act of 2022, President Joe Biden’s health care and clean energy law. Repealing the law could significantly raise costs for American consumers.
The 2022 law, passed by Democrats in Congress without Republican support, approved $369 billion for energy infrastructure; capped prescription drug costs for older Americans; allowed Medicare to negotiate drug prices; and funded IRS modernization to target wealthy tax evaders.
Starting Jan. 1, a provision limited Medicare Part D subscribers’ prescription drug costs to $2,000 annually, potentially saving nearly 19 million Americans an average of $400 in 2025, with the highest costs saving about $2,500, per a Health and Human Services report.
The first 10 drug price cuts go into effect in 2026, saving Medicare recipients $1.5 billion and the program $6 billion annually, according to the Centers for Medicare and Medicaid Services.
A September 2024 KFF Health poll showed 85% voter support for Medicare drug negotiations, including 77% of Republicans. Over two-thirds favored expanding the $2,000 cap on prescription drugs and the $35 insulin cap to other insurance plans.
Congressional Republicans and Big Pharma oppose the law. Efforts by Tiffany and Republicans to repeal it stalled with Democrats holding a Senate majority and Biden in the White House in 2023 and 2024.
With Republicans now leading the Senate and Donald Trump returning to the White House, repeal looks more plausible. A Brookings Institution analysis suggested the act might reduce government spending, yet its economic impact could be costly.
Tiffany’s office did not comment. In February 2023, Tiffany stated in a press release that repealing the act would stop $80 billion to the IRS, $3 billion for electric trucks, and $369 billion in environmental spending. He claimed repeal would lower living costs.
The 2022 law’s IRS modernization investments were forecasted to generate $203 billion in unpaid revenue by 2031, surpassing its $78 billion cost.
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