ICYMI: Inflation Reduction Act Provisions to Lower Health Care and Energy Costs Went into Effect on January 1

WASHINGTON, D.C. – Today, U.S. Senators Mark R. Warner and Tim Kaine released the following statement regarding provisions to lower health care and energy costs that went into effect on January 1, 2024. These provisions were made possible by the Inflation Reduction Act, which was supported by the senators and passed in the Senate by one vote. These measures to lower costs come as the prices of hundreds of drugs are expected to rise this month.

“When we passed the Inflation Reduction Act, we knew that it would have tremendous benefits for communities across Virginia. We’re excited that key provisions from the law went into effect this year to help lower prescription drug and energy costs for millions of Americans. We look forward to Virginians continuing to see the benefits of the Inflation Reduction Act in the years to come.”

The following provisions went into effect on January 1, 2024:

• Lower Health Costs for Low-Income Americans: Americans with Medicare who have incomes up to 150% of the federal poverty line are now eligible for full benefits under the Part D Low-Income Subsidy (LIS) program, also known as “Extra Help.” The Extra Help program helps low-income Americans on Medicare cover their out-of-pocket costs for prescription drugs. Virginians can apply for Extra Help through the Social Security Administration by going online, calling 1-800-772-1213, or visiting a local Social Security Office.

• Lower Drug Costs for Millions of Medicare Recipients: A provision in the IRA will make accessing medication more affordable for millions of Americans on Medicare who rely on expensive medications, often to treat chronic conditions. This IRA provision institutes a cap on prescription drug costs for seniors on Medicare Part D for the first time.

• Lower Premiums for More Than 500,000 Virginians: There are additional provisions that went into effect to limit annual premium increases for Americans, including more than 500,000 Virginians, enrolled in Medicare Part D.
• Simplified Electric Vehicle (EV) Tax Credits: The IRA allows qualified individuals to get a tax credit up to $7,500 for the purchase of new EVs or a tax credit of up to $4,000 for certain used EVs and plug-in hybrids purchased through a dealership. Virginians who buy an EV from a participating dealer can now choose to receive their tax credit for that purchase at the point-of-sale instead of after filing their taxes.

More information about other key provisions from the Inflation Reduction Act that went into effect in 2023 is available here.

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