What is in the Inflation Reduction Act? A staggering brew of green energy spending and corporate taxes, as well as major changes to Medicare. Will new Medicare laws help retirees? And will the new laws help the economy? Maybe. Or maybe not. When it comes to massive legislation, the future is always a bit hazy.
The timeline below details some of the major Medicare law changes that are planned. Since health care is one of the biggest unknown costs in retirement, lowering drug costs and making spending more predictable for Medicare recipients could absolutely have a positive impact on millions of people. The new rules also could mean premium changes as insurance companies figure out their models.
Whether the overall bill will live up to its name, lower inflation, and have a net positive impact on the economy also remains to be seen. Some economists project the bill will end up modestly reducing inflation and trimming the federal budget over the next decade. Others are concerned about the impact of the new corporate tax rules written into the legislation.
Legal challenges or post-election changes could end up altering much of what’s in the new legislation. Much depends on the actual execution of the new rules. As is usually the case, only time will tell.