THE CLIMATE BILL AND YOUR MONEY

Seniors will pay less for prescription drugs, and tax breaks could boost sales of electric vehicles.

- SANDRA BLOCK

AS KIPLINGER'S WENT TO PRESS, the U.S. House of Representatives was expected to approve the Inflation Reduction Act, a $739 billion package that includes everything from a tax hike on large businesses to extended subsidies for Affordable Care Act health insurance policies. Here's a look at the provisions that could affect your finances.

Lower drug costs for seniors. Medicare will have the right to negotiate prices for prescription drugs for the first time since Congress enacted a prescription drug benefit for seniors in 2003. However, the authority won't extend to all prescription drugs. Starting in 2026, Medicare will be allowed to negotiate prices for the 10 highest-cost drugs covered by Medicare Part D. The number will increase to 15 Part D drugs in 2027, 15 Part B and D drugs in 2028, and 20 Part B and D drugs in 2029 and beyond.

The bill also includes a $2,000 cap on seniors' Part D out-of-pocket costs, starting in 2025. The Kaiser Family Foundation estimates that 1.4 million Medicare beneficiaries had out-ofpocket drug costs of $2,000 or more in 2020.

Seniors who rely on insulin to treat diabetes will also benefit from a provision that caps the cost of insulin at $35 a month.