Underwood’s Legislation to Lower Health Care Costs to be Signed into Law in Inflation Reduction Act; Lowers Costs by An Average of $2,400 Per Family for Marketplace Plans

WASHINGTON – Today, Congresswoman Lauren Underwood (IL-14) applauds the inclusion of the Health Care Affordability Act, her signature legislation to lower health care premium costs, in the Inflation Reduction Act of 2022. The Inflation Reduction Act is historic legislation that will reduce health care and prescription drug costs, fight inflation, make corporations pay their fair share, and tackle the climate crisis. It now heads to the president’s desk to be signed into law.  

Underwood’s Health Care Affordability Act lowers health coverage premiums by making tax credits for Marketplace plans more generous and available to more Americans. First enacted through the American Rescue Plan, these tax credits led to a record 14.5 million Americans enrolling in Affordable Care Act (ACA) coverage during the 2022 Open Enrollment period. In Illinois’ 14th District, Underwood’s legislation has lowered premiums by hundreds or thousands of dollars for an estimated 17,000 people and made lower-cost plans available to as many as 22,000 people without coverage. The Inflation Reduction Act will extend these tax credits through 2025, lowering health care costs by an average of $2,400 per family for a family of four. 

Without the extension of these tax credits, 19,000 Illinoisans would have become uninsured. Others would have faced steep premium increases: A 45-year-old Illinoisan making $30,000 would have seen their annual premium increase from $984 to $2,304. A family of four making $120,000 would have seen their annual premium increase from $10,200 to $16,037. 

“I came to Congress with the mission of ensuring every American has access to high-quality, affordable health care,” said Underwood. “My Health Care Affordability Act in the Inflation Reduction Act is a historic step to make high-quality health care affordable and accessible for millions of families in my northern Illinois community and across the country — and it will continue our advancements in health care affordability, coverage, and equity.  

“I voted to pass the Inflation Reduction Act because it meets the needs of Illinois families by lowering prescription drug costs for seniors, driving down inflation, and making the single largest climate investment in U.S. history.” 

The Inflation Reduction Act addresses today’s urgent problems and invests in our future. In 2020, more than 50,000 Medicare beneficiaries in Illinois spent more than $2,000 on their prescription drug costs. The Inflation Reduction Act will cap out-of-pocket costs for prescription drugs at $2,000 per year and cap insulin costs at $35 per month, making medication affordable and accessible.  

This legislation is the single largest climate investment in U.S. history, putting the country on a path to reducing greenhouse emissions by 40 percent by 2030. This is crucial; climate change is a public health crisis that is already impacting northern Illinois through extreme weather events, heat waves, tornadoes, and flooding.  

The Inflation Reduction Act will provide much-needed relief to families by lowering their energy costs, while also bringing us closer to meeting our climate goals. The vast majority of 14th District families are eligible for the new electric vehicle tax credit, and Americans across the country will soon be able to take advantage of rebate programs to help make energy efficient improvements to their homes.   

Underwood’s Health Care Affordability Act is far-reaching legislation that represents why she initially ran for Congress: to lower health care costs, protect people with pre-existing conditions, and expand access to high-quality, affordable health care.  

Thanks to the Health Care Affordability Act: 

• A record 14.5 million Americans signed up for Marketplace health care coverage for 2022 through the Open Enrollment period; 
• Four in five enrollees can find a plan for $10 or less per month; and 
• Families are saving an average of $2,400 on their annual premiums for ACA plans. 

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