The Tartan

By Jaden Singh

On Feb. 13, Secretary of the Treasury Janet Yellen visited Pittsburgh’s West Penn Hospital to discuss economic policy and healthcare. After touring West Penn’s new Skin Cancer Center, Yellen addressed a group of regional health care workers.

Yellen credited West Penn’s success in increasing accessibility and reducing costs, then reflected on how the Biden administration has acted to achieve similar goals. Yellen cited a few figures in relation to what she termed the “strongest economic comeback of our lifetimes,” noting that inflation was down by two thirds from its June 2022 peak, household median income had risen 37 percent from 2019 to 2022, and that the country has had a historic streak of low unemployment.

The drop in inflation, which had been one of the Biden administration’s most pressing economic issues, has occurred without recession — a fact Yellen contrasted with predictions that cutting inflation would require an end to economic growth.

Yellen acknowledged that for many middle-class Americans, expenses for common goods remain too high. Yellen said the administration will amend that by continuing to decrease energy costs. She referenced the administration’s focus on making “historic investments in transitioning toward clean energy,” highlighting how the 2022 Inflation Reduction Act (IRA) helped achieve lower costs and incentivize a shift toward sustainability. Taxpayers can claim credits toward utility bills for clean energy improvements, and the Act aims to decrease the costs of these clean technologies.

Yellen also discussed healthcare. Citing that one-fifth of Americans’ household income typically covers healthcare costs, Yellen said that affordable healthcare would lead to stronger middle-class financial security.

Yellen said that over eight million Americans have gained healthcare coverage via the Affordable Care Act since Biden took office. Additionally, the Affordable Care Act’s most recent open enrollment period, which affords an alternative marketplace for finding insurance coverage, saw 21 million new sign ups, an all-time record.

Addressing the savings healthcare programs can create, Yellen said that families using the American Rescue Plan save an average of $40 per person per month, with one-third paying less than $10 for monthly coverage. By extending the American Rescue Plan’s low premiums, the IRA also produced an average of $800 saved per year for 15 million Americans.

Yellen said the IRA further creates savings by allowing Medicare to negotiate prices for prescription drugs, which helped combat drug companies “unfairly profiting of hard-working Americans.”

Similarly, drug companies are required to pay rebates to Medicare if price increases exceed the rate of inflation. Yellen also noted how the IRA lowers costs for common health care products such as insulin, which is capped at $35 a month for those on Medicare. Many Medicare beneficiaries will also be eligible for free vaccinations.

Beyond the ARP and IRA, Yellen referenced the administration’s actions against “unfair and surprise” bills. Protections against unfair medical debt and crackdowns on misleading insurance products are intended to give Americans “predictability and control.”

Yellen concluded by outlining the future efforts the Biden administration would like to take to bring down healthcare costs. These included making low premiums permanent, increasing accessibility and awareness for government support, and increasing transparency with health care plans.

Yellen’s Pittsburgh visit made up the Pennsylvania portion of a series of trips to battleground states, and Yellen followed up the next day with a stop in Detroit. Polls indicate the perception of Biden’s economic track record remains poor, and with the presidential election approaching in November, the Biden administration hopes to communicate to voters in battleground states their economic successes.

Yellen took a similar tour prior to the 2022 midterm elections to talk up legislative accomplishments.