Congressional Republicans have criticized the Biden-Harris administration for the impacts of the “Inflation Reduction Act,” which, by its title, was supposedly intended to combat the inflationary pressures that have financially devastated millions of Americans over the past few years. The GOP is now demanding answers after it appears the spending package will lead to a spike in Medicare premiums.
In an August letter addressed to Gene Dodaro, the Comptroller General of the United States, Republicans in Congress drew attention to the Inflation Reduction Act’s “problematic design,” which has created unintended consequences for healthcare plans. The letter highlighted concerns from numerous economists and policymakers who warned about consequences such as cost hikes.
The letter began, requesting an “expedited review” from the Government Accountability Office (GAO) of “the Part D Premium Stabilization Demonstration, as announced by the Centers for Medicare & Medicaid Services.” It continued, “In response to the Inflation Reduction Act’s (IRA) problematic design features and rushed legislative process, the proposed demonstration employs arbitrary policy levers to achieve short-term objectives.”
Furthermore, the letter accused the IRA of lacking sufficient analysis toward the impacts it would have on healthcare. “The initiative lacks any budgetary analysis, clear statutory basis, or credible research goals. The integrity of the Medicare program and the taxpayer dollars that finance its benefits demand more than partisan aspirations to justify extra-statutory, eleventh-hour policy changes,” the letter read.
Noting the scrutiny the plan received from experts, the statement continued, “Prior to the IRA’s enactment, numerous policymakers, economists, and patient advocates warned of the law’s potential for triggering harmful consequences, including cost hikes for seniors and working families. Since the implementation of the IRA’s drug pricing measures began, seniors have experienced reduced choices and increased medication coverage costs.”
The letter addressed to the comptroller continued highlighting the consequences seen in the prescription drug market, particularly for seniors. “Medicare beneficiaries have seen a significant decrease in the number of plan options available, with prescription drug plan (PDP) offerings declining by 25 percent since 2020. Certain large insurers have announced their intent to exit the PDP market segment entirely. For the plan options that remain, seniors face substantial premium increases.”
“Next year, as IRA implementation continues to progress, these financial effects will become all the more drastic, with a slated year-over-year National Average Monthly Bid Amount hike of nearly 180 percent,” the letter continued. “Underscoring the law’s market distortions and disruptions, 11 of the 14 national PDPs have already seen a reduction in non-low-income subsidy enrollment since 2023.”
Maintaining that improving the healthcare for American citizens is a bipartisan issue, the letter stated, “Our committees have worked on a bipartisan basis, through regular order, to advance policies intended to improve prescription drug access and affordability. The Part D program should serve the needs of all seniors, and high out-of-pocket costs and premiums present barriers for far too many Americans. These challenges require durable solutions that comport with existing procedures, authorities, and laws.” The letter to Dodaro concluded with a lengthy list of questions, requesting the information be provided on the legal authority of the measure in the Inflation Reduction Act and its fiscal impact.
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