President Biden Signs Sweeping Prescription Drug Reform

A table with many different types of pills on it.


On August 16, President Joe Biden signed the Inflation Reduction Act which includes:

About $370 billion into policies aimed at reducing U.S. Greenhouse gas emissions.  $10’s of billions of dollars will go toward supporting renewable energy development, lowering the costs of electric vehicles, building out public electric car charging stations, etc.

The bill is the most significant prescription drug legislation to pass in 20 years. Diabetic seniors won’t have to pay more than $35 a month for insulin.  Starting in 2026, out-of-pocket costs for all prescription drugs will be capped at $2,000 a year for Medicare recipients.

Because the bill raises more revenue through higher taxes than it spends, it’s projected to reduce the federal budget deficit by close to $300 bill over the next ten years.

 

TRUST Act Working Its Way Through Congress Could Cut Medicare And Social Security

A building with the capitol in the background.


A very unpopular bill called The Time to Rescue United States Trusts (TRUST) Act is now working its way through Congress.  If passed, it would set up groups of a dozen lawmakers with the power to recommend cuts to Social Security and Medicare.  This would hit the most vulnerable.  Half of those covered by Medicare have incomes of less than $27K.  Social Security is the main source of income for more than 34 million older households.  Under the new law, if seven of the twelve committee members approve of changes, they would be fast tracked in both the House of Representatives and the Senate, with no adequate debate among lawmakers and no amendments permitted on the floor of the House or the Senate.  To make sure that your senators and representative know you oppose the TRUST Act, please go to  https://action.aarp.org/trustact.

Carmel, CA Family Caregivers May Soon Get A Tax Credit Of Up To $5K

A man and woman posing for the camera.


A bill which is working its way through both houses of Congress would give a much-needed financial break to 48 million family caregivers in America who struggle every day as they care for a loved one.  I know the feeling well, I cared for my grandmother in my own home over five years until she passed away just shy of her 98th birthday.  She had Alzheimer’s disease and was quite a handful.  However, it was very fulfilling personally to be able to be there as she struggled in her final years.  If you face a similar situation, please contact our local chapter of the Alzheimer’s Association in Ryan Ranch.  They have some wonderful people and there is also a 24-hour hotline where you can speak to someone compassionate when you are struggling at 800-272-3900.  Thankfully, The Credit for Caring Act which was introduced back in May in the U.S. Senate looks likely to pass, and it will give a tax credit of up to $5K to working family caregivers.  It would give eligible family members a 30% credit for qualified expenses above $2K, paying for things like home care aides, adult day care, respite care and home modifications like ramps and smart technology to make your home safer.

https://www.aarp.org/caregiving/financial-legal/info-2021/new-credit-for-caring-act.html

Affordable Care Act ACA Premium Subsidy Extended : By Derek Baine

A person holding a stethoscope in their hand.


Millions of Americans between the ages of 50 and 64 will qualify for help with premiums on health insurance through the Affordable Care Act (ACA) marketplace, and they have until August 15 to enroll.  It’s designed to help people who lost their health insurance because of the job losses created during the COVID-19 pandemic.  New subsidy rules will decrease monthly premiums for many insured through the marketplace by an average of $50.  AARP research found that 5.6 million adults who are over 50 but not old enough to enroll in Medicare do not have access to coverage through their job or a public program.

Carmel, CA New IRA Retirement Tool With No Early Withdrawal Penalties


With the COVID-19 pandemic forcing a number of Americans to be laid off, many people are taking a close look at 72(t) plans, which allows you to withdraw money without the usual 10% penalty, even if you are below the age of 59.5 years old.  Dubbed 72(t) plans, they give you a series of equal payments taken at least annually.  The duration of the plan must be at least five years or until the person reaches 59.5 years, whichever is longer.  Talk to your tax planner, Monterey County Bank or one of our other local banks about this option.  Another possibility which was made as part of the Cares Act is an exemption to coronavirus-related distributions as another exception.  If you are interested in this option, act quickly as it’s only available until year end.

https://www.wsj.com/articles/early-ira-withdrawals-can-be-penalty-free-11607004008