Between the billions of dollars worth of medical debt and the exponential rise in the cost of care, the U.S. healthcare system may seem like an uncontrollable marketplace at best. But President Biden is adding new rules.
The Inflation Reduction Act of 2022 tackles everything from clean energy investment and carbon emissions to tax loopholes for the wealthy and the creation of manufacturing jobs. On the healthcare front, the IRA is set to extend the Affordable Care Act's enhanced premium subsidies through 2025 and lower prescription drug prices and out-of-pocket costs for Medicare beneficiaries. This means anyone who purchased their individual health plan through the ACA marketplace or is enrolled in Medicare may see significant savings.
However, the same cannot be said for employers.
"The reason why this legislation is so profound is because, by and large, it stabilizes and even reduces the cost of individual plans," says John Staub, director of outreach at Remodel Health, a health benefits management platform for employers. "If employers are offering a group plan, there is no insulation from rising costs."
Employers typically offer group health plans, directly providing health coverage to their entire workforce. But Staub underlines that this may not be a cost-effective choice in light of the IRA.
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