One Year Later: Inflation Reduction Act Is Lowering Costs for Virginia Families

RICHMOND, Va. — Freedom Virginia today celebrates the one-year anniversary of the passage of the Inflation Reduction Act (IRA), a landmark victory for Virginia families in every corner of our Commonwealth.

The law is bringing down healthcare and energy costs for Virginians and people across the country. Below are highlights of how the IRA is saving families money:

Bringing Down Healthcare Costs

• Beginning in 2025, includes a $2,000 annual out-of-pocket cap for Medicare beneficiaries. 390,400 Virginians will save an average $440.62 thanks to this provision.
• Gives Medicare the authority to negotiate the costs of certain prescription drugs.
• Caps the cost of insulin to $35 a month for 36,461 Virginians on Medicare
• Guarantees no-cost vaccinations, including the shingles vaccine, to over 1 million Virginia seniors enrolled in Medicare Part D
• Helps over 300,000 Virginia residents who purchase healthcare through the Marketplace save an average of $850 a year through the continuation of the Affordable Care Act subsidies.
• Penalizes pharmaceutical companies if they increase prescription drug costs faster than inflation.

Bringing Down Energy Costs

• Allows households to access up to $14,000 to install heat pumps and other electrification upgrades
• Provides up to $3,200 in annual tax credits to make homes more energy efficient.
• Provides up to $8,000 in energy-saving home improvements, insulation, solar panels, EV hookups, or energy-efficient appliances.
• Provides up to $7,500 in tax credits for new electric vehicles made in the United States and up to $4,000 for used electric vehicles.

“Thanks to the Inflation Reduction Act, hardworking Virginians now can keep more of what they earn,” said Freedom Virginia Executive Director Rhena Hicks. “We need to build off of the progress that Democrats have made at both the state and federal levels and continue to lower costs for families. Here in the Commonwealth, we can do that with a Prescription Drug Affordability Board. Unfortunately, Virginia House Republicans killed SB957, which would have established the Board, while Republicans in Congress have threatened repeal of the Inflation Reduction Act. We need legislators in Richmond and in Washington who will side with Virginia families over Big Pharma.”