Will the measure actually tame the price spikes that have inflicted hardships on American households?nEconomic analyses of the proposal suggest that the answer is likely no — not anytime soon, anyway.
over the next decade,"the impact on inflation is statistically indistinguishable from zero.”
Yet Douglas Holtz-Eakin, who was a top economic adviser to President George W. Bush and later a director of the CBO, noted that the lower deficits won't kick in until five years from now and won't be very large over the next decade considering the size of the economy. While the act could have the benefit of increasing the savings of millions of households on pharmaceutical and energy costs, it’s unlikely to have much effect on overall inflation. Prescription drugs account for only 1% of the spending in the U.S. consumer price index; spending on electricity and natural gas makes up just 3.6%.
The legislation authorizes Medicare to negotiate prices of 10 expensive pharmaceuticals, starting next year, though the results won't take effect until 2026. Up to 60 drugs could be subject to negotiation by 2029.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Democrats pass major health, climate and tax bill along party lines; Biden signing next weekEvery House Democrat on Friday voted to pass the Inflation Reduction Act over Republican opposition, sending the climate, health and tax bill to President Joe Biden
Read more »
House Democrats send long-awaited healthcare and climate bill to Biden's deskThe House passed the Democrats' healthcare, climate, and tax bill, the Inflation Reduction Act, on Friday, sending a scaled-back version of President Joe Biden's agenda to his desk.
Read more »
Inflation Reduction Act may have little impact on inflationWith inflation raging near its highest level in four decades, the House gave final approval to President Joe Biden’s landmark Inflation Reduction Act.
Read more »
Monkeypox? Climate? Deciding what's a national emergencyClimate activists are pressuring President Joe Biden to declare a national climate emergency, something the White House hasn't done yet.
Read more »
Dems Near Congressional Passage of Climate, Health PackageDemocrats pushed their flagship climate change and health care bill toward House passage Friday, placing President Joe Biden on the brink of a back-from-the-dead triumph on his leading domestic goals that the party hopes will energize voters going into November’s elections. The narrowly divided House was poised to approve the legislation, which is but a shadow of the larger, more…
Read more »
Biden is copying Lincoln and Roosevelt in style, not substanceIn October 2020, Joe Biden spoke at Gettysburg and at Warm Springs, Ga., home of Franklin Roosevelt’s Little White House, surely hoping some of Abraham...
Read more »