What does the Inflation Reduction Act do for Illinois?

Illinoisans feeling the effects of higher prices at the pump and the grocery store could see relief from the Inflation Reduction Act, U.S. Sen. Dick Durbin said during a Tuesday press conference in Springfield.

With gas averaging $4.38 per gallon statewide according to AAA and some food prices more than 60% higher than last year, Durbin said the Senate-passed legislation will take on inflation by reducing health care costs through capping prescription prices – good for Illinoisans on Medicare.

Through the legislation, out-of-pocket prescription drug costs will be limited to $2,000 starting in 2025 for those on Medicare, who will also negotiate for drug prices. What will not be capped, however, are monthly insulin costs for those on a health insurance plan.

This was a regret for Durbin.

"We have over a million people in Illinois that suffer from diabetes, so this is a very personal issue," he said.

If successful, the bill would have kept insulin – needed by those with Type 1 diabetes who do not produce the hormone in sufficient amounts – at $35 per month. However, a simple majority in the Senate would not suffice, and the measure was not included, missing the 60 needed votes by three.

While state law caps insulin prices at $100 per month, inclusion of this federal limit would have saved the 1.3 million Illinoisan adults with diabetes millions of dollars. According to the Illinois Department of Public Health, diabetes is the seventh-leading cause of death nationally and statewide.

Still, there is some debate as to how much IRA would actually reduce inflation. In a letter to U.S. Sen. Lindsay Graham, R-South Carolina, the non-partisan Congressional Budget Office said the bill would have a "negligible" effect on inflation this year and next primarily due to uncertainty in supply and demand projections.

The IRA is now waiting an affirmative vote by the U.S. House of Representatives, which could come as soon as Friday, and then a signature from President Joe Biden.

As Durbin said, investments in climate change response are also at the legislation's core – major for the state.

"This is going to make a dramatic change across Illinois and even in Springfield," the Democratic senator said of the $740 billion legislation. "The idea behind this bill is to create incentives for people to do the right thing."

Those incentives promote energy companies in exchange for producing zero emissions, which Durbin says is big for Illinois due to its major presence of nuclear energy – producing 52% of the state's electricity according to Nuclear Power Illinois. According to the non-partisan CBO, qualifying nuclear power companies will receive $30 billion over the next 10 years.

This investment is part of the $369 billion in clean energy investments, said Jennifer Walling, executive director at the Illinois Environmental Council. For the state, it could both maintain and attract new workers, she said.

"This bill will supercharge what we've done to create equitable jobs and tackle the climate crisis here in the state," Walling said, adding how Gov. JB Pritzker passed the Climate Equitable Jobs Act last year with the goal of 100% carbon-free energy power by 2045. The IRA calls for a carbon emissions reduction of 40% by 2030.

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This bill, being more incentive-based, kept away such ideas as a carbon fee, supported by Durbin, partially due to the 50-50 split in the Senate. IRA required a tie-breaking vote from Vice President Kamala Harris and had no bipartisan support.

Durbin said the split was instead for Democrats to "seize the moment" when asked why it prioritizes incentives over punishments.

"I think it's a sensible approach, but it's not the right moment for this," he said.

Also not included in the bill was expansion of the child tax credit, primarily due to opposition from U.S. Sen. Joe Manchin, D-West Virginia.

Calling this a "quality of life" issue, Durbin said the credit has helped the economy since it provides caregivers with needed funds in raising children.

"These were not included, many of the critics said it was just too much," he said. "If you truly care for your children and grandchildren, we've got to do something about this."

The American Rescue Plan-funded credit provides $3,000 per child ages 6 to 17 and $3,600 per child younger than 6.

Contact Patrick Keck: 312-549-9340, pkeck@gannett.com, twitter.com/@pkeckreporter