The Subcommittee on Economic Growth, Energy Policy, and Regulatory Affairs, alongside the Subcommittee on Health Care and Financial Services, conducted a joint hearing to scrutinize the Inflation Reduction Act (IRA) and its impact on energy policy and healthcare. The hearing was titled “Mandates, Meddling, and Mismanagement: The IRA’s Threat to Energy and Medicine.”
Chairman Eric Burlison (R-Mo.) of the Economic Growth, Energy Policy, and Regulatory Affairs Subcommittee expressed concerns about the implications of the IRA on tax codes and prescription drug costs. He stated that "the Biden Administration’s pill penalty will ultimately increase drug costs and federal expenditures on Medicare."
Dr. Erin Trish from the USC Schaeffer Center highlighted issues with Medicare Part D changes under the IRA. She noted a 35% reduction in plan offerings this year due to market instability caused by abrupt changes. "Today, beneficiaries have the fewest options ever in the program’s 20-year history," she said.
Ben Lieberman from the Competitive Enterprise Institute testified about increased estimates for energy provisions in the IRA. Initially projected at $370 billion over ten years, updated estimates by Congressional Budget Office (CBO) and Joint Committee on Taxation suggest these costs have more than doubled.
Dr. William McBride of the Tax Foundation cited outside groups like Goldman Sachs predicting costs exceeding initial expectations by roughly $1 trillion over a decade.
Glenn Grothman (R-Wis.), Chairman of Health Care and Financial Services Subcommittee, criticized subsidies for green energy projects as corporate welfare benefiting Democratic donors rather than average Americans.
During discussions, Dr. McBride confirmed that high-income individuals primarily benefit from tax credits intended for solar panels and electric vehicles.
Rep. John McGuire (R-Va.) raised concerns about potential declines in medical research due to IRA policies. Dr. Trish emphasized reforms are needed to realign pricing incentives for high-value drugs.
Rep. Brandon Gill (R-Tx.) pointed out that energy tax credits disproportionately favor wealthy Americans over working-class citizens.
Mr. Lieberman agreed that priorities within the IRA do not align with those of most working-class Americans.
The hearing provided a platform for lawmakers to discuss various perspectives on how the IRA affects different sectors of American society.
