August 11, 2022
WASHINGTON, D.C. – Today, Rep. Scott Peters (CA-52) voted to pass the Inflation Reduction Act, which includes the drug pricing reform framework from his Reduced Costs and Continued Cures Act (RCCCA) introduced last fall. The Inflation Reduction Act lowers out-of-pocket drug costs, gives Medicare the ability to negotiate drug prices and sets an out-of-pocket maximum for insulin within Medicare all while preserving private sector incentives for drug discovery. It is also the largest climate and clean energy package in U.S. history, and the biggest down-payment in deficit reduction since Rep. Peters has served in Congress. This package includes many of the policies within the plan Rep. Peters authored with the New Democrat Coalition to alleviate inflation.
“I strongly support the Inflation Reduction Act, which is a historic bill to help San Diegans deal with the rising cost of living, particularly climbing prescription drug prices and energy costs. It’s also the largest investment Congress has ever made to tackle climate change and reduce pollution,” said Rep. Peters. “It’s hard to imagine that my Republican colleagues in the Senate voted to remove the insulin cap that could have helped millions of Americans save money. I look forward to seeing these investments become a reality.”
The Inflation Reduction Act includes important provisions which will:
- Allow Medicare to negotiate drug and insulin prices in 2023;
- Cap out-of-pocket costs for prescription drugs for seniors at $2,000 per year and no more than $35 for insulin;
- Require drug companies to rebate back the price difference to Medicare if they raise prices higher than inflation;
- Save up to $4,000 for California families by extending tax credits to subsidize Affordable Care Act insurance premiums;
- Reduce carbon emissions by 40% by 2030 by investing in American clean and renewable energy production;
- Create an estimated 1.5 million new jobs to more quickly accelerate our energy transition;
- Make clean energy technologies cheaper for San Diego families, such as home appliances, solar panels, and electric vehicles;
- Cut down on methane emissions by imposing a fee on methane and providing funding to monitor and mitigate methane leaks;
- Deploy clean energy faster by establishing a national climate bank and building out transmission lines;
- Protect against wildfires by funding hazardous fuel reduction projects & restore our coastal ecosystems; and
- Reduce the federal budget deficit by $300 billion by imposing a 15% minimum corporate tax to ensure the most 150 profitable corporations pay their fair share, by taxing stock buybacks, and by enabling the IRS to reduce the tax gap.
Maya MacGuineas, president of the Committee for a Responsible Federal Budget, said, “The Committee for a Responsible Federal Budget applauds Representative Peters for continuing to be a leader in tackling budget issues and supporting the Inflation Reduction Act of 2022. This bill is not only the largest deficit reduction bill in over ten years, but also pushes in the right direction on inflation. Representative Peters deserves recognition for leading on fiscal responsibility and voting for this vital bill.”
For legislative text and full summaries of the Inflation Reduction Act, click here.