"Given the IRA’s central role in the Biden-Harris Administration’s presidential campaign, these concerns warrant additional investigation." https://t.co/KRLkvsC6Dc
— Senator Rand Paul (@SenRandPaul) September 29, 2024
President Biden’s administration has taken steps to prevent a significant increase in Medicare drug premiums for older Americans next year. By allocating billions of dollars in subsidies to insurers, the administration has managed to avoid a potentially damaging spike in costs just weeks before the presidential election. Without this intervention, many seniors would have faced hundreds of dollars more in annual insurance premiums.
The move strategically mitigated a potential minefield of higher costs affecting the nation’s most steadfast voters. To avert these rate increases, administration officials decided months ago to channel funds from a Medicare trust fund.
Kamala Harris cast the tie-breaking vote for the Inflation Reduction Act, which is raising seniors' health care premiums. Are Biden and Harris using taxpayer funds to hide these hikes as seniors head to vote? https://t.co/jEMFfcrVz0
— Rand Paul (@RandPaul) September 28, 2024
This measure was designed to offset what could have been significantly higher premiums due to changes in Medicare under President Biden’s Inflation Reduction Act, including a $2,000 annual cap on out-of-pocket spending.
Pharmacy benefit managers (PBMs) are supposed to pass the rebates they receive on to health plans and patients—but instead, they frequently pocket the discounts. Read more: https://t.co/elxlDHkDAc
— The NAM (@ShopFloorNAM) September 27, 2024
Critics have called the administration’s offset plan a political maneuver meant to sway votes, asserting that it offers only temporary relief to older people. While patients may pay less at the pharmacy counter, someone must cover the additional cost. Higher premiums could have posed a significant challenge to Vice President Kamala Harris’s presidential campaign and threatened one of the administration’s critical achievements in reducing patients’ drug costs.
OK can we talk about calling the Section 402 demo as "savvy"!?! @RebeccaDRobbins @ReedAbelson
It just paid insurers more taxpayer dollars to keep premiums lower!! In an election year!!
Bush demo was budget neutral & actually tested something!https://t.co/EMtokuZ9f0
— theo merkel (@theomerkel) September 27, 2024
biden blocks 2024 Medicare premium spike
The Inflation Reduction Act, for which Harris cast the decisive tie-breaking vote in 2022, aims to implement significant changes to Medicare pricing starting in 2025. The law includes measures such as a $35 cap on insulin and an out-of-pocket maximum of $2,000 for drug costs for those on Medicare.
Additionally, Medicare will be able to negotiate lower prices for expensive medications for the first time. The Biden administration has asserted that these changes will save 19 million seniors an average of $400 yearly. However, critics have warned that it could lead to higher premiums for the average senior.
Insurers may need to cover the additional medication expenses by increasing premiums, co-pays, and deductibles. Despite the potential downsides, some seniors might view Harris’ tie-breaking vote positively, as they will benefit from the cap on drug costs. Democrats are expected to highlight the drug cost savings, while Republicans are likely to focus on any premium increases.
Long-term, the changes could spark a major shift in the health care industry, but there could also be unintended consequences. Seniors are advised to stay informed and be ready to adapt, as some might see their costs plummet while others might need to shop around for better Medicare plans.
- NYTimes.”Biden Officials Stave Off Sticker Shock on Medicare Drug Premiums”.
- Newsweek.”How Kamala Harris’ Tie-Breaking Vote Could Push Up Medicare Costs in 2025″.
- NOLA.”Letters: Mediicare changes only hurt Big Pharma though ads say otherwise”.