Senate Dems look to rectify their previous messaging blunders
So far lawmakers on the left have avoided public infighting and focused on the Inflation Reduction Act’s popular health care provisions. What a difference a year makes, huh?
I remember reading a poll last October that found that just 10 percent of Americans described themselves as familiar with the specifics of what was then known as Build Back Better, a far-reaching set of transformative social and climate policies that were being negotiated in the House and Senate.
At the time, I wrote this represented a knowledge gap that President Joe Biden and congressional Democrats failed to close given the popularity of the individual policies within the plan and the public’s unfamiliarity with it.
But while the fate of the Inflation Reduction Act — a sweeping package of climate, health care and tax provisions — currently hangs in the balance, it’s clear that Senate Democrats see this as an opportunity to course-correct previous messaging deficiencies.
“The Inflation Reduction Act is a difference in values,” Sen. Debbie Stabenow of Michigan and a member of the Senate Democratic leadership said to reporters on Thursday morning. She contrasted her party with the Senate Republicans whom Stabenow said are standing on the side of Big Pharma.
“Senate Democrats are standing on the side of the people,” she added. “The people are going to win this week.”
The IRA extends the enhanced and expanded eligibility for premium tax credits under the Affordable Care Act for three years, beyond President Biden’s first term in office.
The enhanced extensions were passed through the American Rescue Plan in 2021 and enabled 14.5 million people to receive health care coverage. They’re set to expire at the end of the year and would have increased premiums by thousands of dollars for millions of Americans. An estimated three million people would lose their coverage altogether if the IRA fails to pass.
The proposal also enables the federal government to negotiate prices for some high-cost drugs covered under Medicare, a provision that would especially benefit American seniors. Additionally, recipients of Medicare Part D would see their out-of-pocket costs for prescription drugs capped at $2,000 per year. And pharmaceutical companies would be required to pay rebates if their drug prices rise faster than inflation. (Sen. Stabenow said companies have raised prices on at least 100 drugs in the past month.)
The IRA also invests in programs to lower energy costs, increase cleaner production and reduce carbon emissions. The bill will be paid for with a 15 percent corporate minimum tax and revenue collected from closing tax loopholes for wealthy people and stronger enforcement of the tax code by the Internal Revenue Service.
Democratic Sen. Ron Wyden of Oregon said the proposed inflation cap is the first time ever that Congress will have derailed the pharmaceutical industry from raising prices without consequence.
Michael Bennet, a Senate Democrat from Colorado, added that his constituents lament the fact that the combination of housing, higher education, child care and health care is too much for them to build savings for an emergency fund or plan for the future.
Bennet said that it’s time to move on from 50 years of failed trickle-down economics and advance a new agenda for Americans.
The American Rescue Plan, the bipartisan infrastructure law and the recently passed CHIPS and Science bill are the first three realizations of Sen. Bennet’s vision. He said that the Inflation Reduction Act would be the fourth.
Democratic Sen. Raphael Warnock of Georgia, whose victory flipped the balance of power in the Senate back to Democrats in 2021, agrees with his colleagues.
He told reporters that the IRA is a historic once-in-a-generation investment that makes the worst parts of the legislative process worth it.
“I’m not in love with politics,” Warnock, who introduced the bills that include the $35 insulin cap and out-of-pocket limit, said. “I’m in love with change.”
As I wrote in this morning’s newsletter, it’s not a slam dunk that the IRA will be passed.
The process Senate Democrats are using to move the bill — budget reconciliation — requires a simple majority, which means the IRA can pass without Republican support as long as all 50 Democrats vote for it.
And Democratic Sen. Kyrsten Sinema of Arizona, who is viewed as the swing vote that ultimately decides the bill’s fate, has yet to publicly express support for the bill. Her office said she is waiting for the Senate parliamentarian to complete what’s known as a “Byrd Bath,” the process named after the late Sen. Robert Byrd that determines whether bills fall within the reconciliation guidelines. Keep your eye on Independent Sen. Bernie Sanders of Vermont: He’s unhappy with the Manchin-Schumer deal because it excludes too many of the provisions in Build Back Better and plans to offer several amendments to bolster the IRA.
Sen. Wyden, who chairs the Finance Committee with jurisdiction over taxes and revenue, said on Thursday to reporters during a press call that his staff has prepared a year for the Byrd Bath and is confident the parliamentarian will rule in a positive way. (FWIW, Caitlin Emma and Marianne Levine at Politico report that the insulin cap and Medicare provision are among five provisions that may either require tweaking or be tossed altogether.)
Sinema reportedly has requested two changes that would keep what’s known as the carried interest loophole and add several billion dollars in drought funding. (The carried interest loophole allows investment managers to treat certain interest payments as capital gains instead of standard income, which they would pay a higher tax rate on.)
And the House, which is already on recess, would have to return to DC to vote on the bill — Speaker Nancy Pelosi only has a four-vote margin so her caucus will have to be almost as united as the Senate’s for the legislation to make it to President Biden’s desk. If COVID strikes House Democrats though, they can ask another member to vote for them — a privilege that’s unavailable in the House.
Senate Democrats are approaching this process with a let’s-control-what-we-can-control mentality. And even though both public and expert opinion are on their side some voters are hesitant to embrace the optimism emanating from their elected officials after Sen. Manchin dashed their hopes when he pulled the plug on Build Back Better.
“Senate Democrats are committed to lowering costs for taxpayers and families around the country,” Sen. Wyden said in a statement to Supercreator. “Americans are counting on Congress to act and we’re going to get it done.”