The House of Representatives passed the Inflation Reduction Act in August 2022, sending the landmark legislation to President Biden for signature. The Council's Yellow Alert highlighted insurance-relevant provisions including extended ACA premium tax credit subsidies and Medicare prescription drug price negotiation. The law had significant implications for employer-sponsored health insurance markets and the role of commercial insurance brokers advising affected clients.
House Passes “Inflation Reduction Act,” onto the President
to Sign into Law
This afternoon the House of Representatives passed the “Inflation Reduction Act,” capping an almost two-year process with the final details worked out by Senators Schumer (D-NY), Manchin (D-WV) and Sinema (D-AZ). What started out as the $3.5 trillion “Build Back Better Act” that raised corporate taxes, expanded the ACA subsidies granted under the American Rescue Plan, provided investment and incentives to curb greenhouse gas emissions, and a few other items many deemed a “Democrat wish list,” turned into a $1.2 trillion “Inflation Reduction Act.”
In our earlier alerts, we have highlighted the particulars of the bill, but please refer to the following documents that should help in digesting the 800+ pages:
While there were no direct effects to the commercial insurance brokerage industry, we are wary of what cost shifts employers will see as results of the changes to prescription drugs under Medicare. Additionally, we already know there are some concerns on the insurance carrier side regarding the 15% corporate book minimum tax on C corporations with an adjusted financial statement income over $1 billion.
