Cape News

The Congressional Budget Office (CBO) has released an analysis of a new program by the Biden-Harris administration aimed at reducing seniors' Medicare Part D premiums. The CBO estimates that this initiative could cost taxpayers at least $7 billion in 2025, with potential expenses exceeding $21 billion over three years.

This analysis was conducted following a request from several key congressional figures, including House Ways and Means Committee Chairman Jason Smith, House Budget Committee Chairman Jodey Arrington, Senate Budget Committee Ranking Member Chuck Grassley, Senate Finance Committee Ranking Member Mike Crapo, and House Energy and Commerce Committee Chair Cathy McMorris Rodgers.

Chairman Smith commented: “The so-called Inflation Reduction Act – which is law as a result of Vice President Harris’ tie-breaking vote in the Senate – has led to a predictable spike in the cost of prescription drug coverage for America’s seniors. Rather than change course, the Biden-Harris Administration is cutting taxpayer-funded blank checks to large health insurers to sweep the mess under the rug. It is a shameful attempt to delay the inevitable fallout of a failed policy that leaves taxpayers footing the bill today and seniors paying the price tomorrow.”

Chairman Arrington stated: “As predicted, the Biden-Harris Inflation Reduction Act not only quelled investment for new cures but caused Medicare prescription drug plan premiums to skyrocket, and Democrats are scrambling to cover it up before the election."

He added: "Now, CBO confirmed that the Administration’s election year Hail Mary will cost taxpayers an astounding $7 billion next year alone, and $21 billion over the planned 3-year demo, adding to more than $2 trillion in Biden-Harris executive spending.”

Chair McMorris Rodgers remarked: “The CBO confirms the $7 billion cost for just one year of the Biden-Harris administration’s politically motivated scheme to buy off big insurance companies just weeks before an election. The American people should not be fooled by this illegal, last-ditch attempt to cover up Democrats’ disastrous policies that significantly raised Medicare Part D premiums."

Ranking Member Crapo noted: “The Congressional Budget Office has confirmed that the Biden-Harris Administration’s latest 2024 gimmick will spend billions in taxpayer dollars to blanket over the consequences of the rushed partisan so-called Inflation Reduction Act. This type of executive overreach treats the Treasury as a piggy-bank, exacerbating inflation and sidestepping Congress to advance conveniently timed political aims.”

Ranking Member Grassley expressed his concerns: “When Democrats unilaterally enacted major changes to Medicare two years ago, they set seniors up for new expenses and fewer options. This nonpartisan CBO analysis confirms CMS’s cost-shifting plan is a dishonest election-year gimmick to cover up those consequences."

In July 2024, CMS announced a Medicare Part D Premium Stabilization Demonstration program designed to reduce premium costs by sending federal funds directly to large health insurance companies. The program aims to apply uniform reductions on beneficiary premiums and adjust risk corridors.

Before this announcement, average Medicare Part D premiums had increased significantly under President Biden's tenure compared with decreases during President Trump's administration.