Legislation Peters and Stabenow Helped Pass Will Allow Medicare to Negotiate Drug Prices, Cap Insulin at $35/month for Seniors, Reduce U.S. Carbon Emissions by 40 Percent by 2030, Pay Down Deficit, Fight Inflation

WASHINGTON, DC – U.S. Senators Gary Peters (MI) and Debbie Stabenow (MI) today highlighted how the Inflation Reduction Act they helped pass in the Senate will lower health care and prescription drug costs for Michigan families, make historic investments to address climate change, create jobs and incentivize domestic manufacturing – all while reducing the deficit to fight inflation. Click here for the video of Senator Peters and Senator Stabenow talking about the Inflation Reduction Act.

Senator Peters on how the Inflation Reduction Act lowers costs for families: “The central focus of this bill is to reduce costs to Americans. We know that one of the significant drivers of inflation and costs for Americans across our country are rising prescription drug prices. Debbie and I have been fighting for years to bring down drug prices and now we have made a meaningful step forward by allowing Medicare to negotiate with prescription drug companies for lower prices… And that's going to translate into savings for our seniors, and ultimately savings for folks all throughout the economy, as drug companies now have to be more aggressive in their pricing because of this negotiation power. It also helps seniors to cap the amount of money that they pay each year with their Medicare (at) $2,000, and capping insulin prices as well. This will save money for Michiganders immediately within the next few months. This is a significant development to bring down cost for folks all across our state.”

Senator Peters on how the Inflation Reduction Act tackles the climate crisis: “This is the most significant investment ever in reducing the carbon in our atmosphere and therefore dealing with climate change—a 40 percent reduction in climate between now and 2030. A significant investment that will also mean jobs as we move towards renewable energy – solar, wind, heat pumps – all the creative ways that we know that we can generate energy without fossil fuels, that means jobs. The University of Massachusetts has estimated that this legislation alone will create 9 million jobs over the next 10 years. So, over a million jobs per year will be created as a result of this investment. So, we’re doing the right thing by the environment, and we're also doing the right thing when it comes to creating good-paying jobs in Michigan as well as across the country.”

Senator Peters on how the Inflation Reduction Act makes wealthy corporations pay their fair share: “This bill is also completely paid for. This is paid for by making sure that the largest, most profitable companies in America can no longer get away without paying any tax… So, those companies making over a billion dollars in profits will have to pay tax, like every other company, like every other individual in our country. This is about tax fairness. And when that tax fairness kicks in, and they're paying their fair share, not only do we lower the cost for consumers and make sure that we can deal with the climate crisis, we also can lower the deficit. This bill actually will reduce the federal deficit by $300 billion – and economists all across the country will say that that is certainly anti-inflationary.” 

To view or download the video of Senator Peters’ opening remarks, click here. 

“The Inflation Reduction Act is all about lowering costs and bringing good-paying jobs home. This bill directly takes on Big Pharma and will cut prescription drug costs for people across our country. This historic legislation also includes the largest investment ever in supporting our farmers and foresters to tackle the climate crisis. This is a big deal for Michigan,” said Senator Stabenow.

To view or download the video of Senator Stabenow’s opening remarks, click here.

The Inflation Reduction Act – which Peters and Stabenow helped pass in the Senate and now heads to the U.S. House of Representatives for consideration – has received broad support from the American people, economists across the spectrum, and organizations representing patients, consumers, seniors (including AARP), unions, small businesses, employers, physicians, nurses, and disease advocacy groups. A group of 126 leading economists – including several from Michigan – wrote, “this historic legislation makes crucial investments in energy, health care and in shoring up the nation’s tax system. These investments will fight inflation and lower costs for American families while setting the stage for strong, stable, and broadly-shared long-term economic growth.” Moody’s Analytics said, “…the Inflation Reduction Act will lean against inflation over the next decade. It also adds a bit to growth… and it is more than paid for with tax hikes on large corporations and the well-to-do.”

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