Central Montana Times

U.S. Senator Steve Daines has criticized the Biden-Harris administration's new Medicare policy, which he claims will impose a significant financial burden on taxpayers in 2025. According to an analysis by the nonpartisan Congressional Budget Office (CBO), the recently announced subsidy for insurance companies aims to address issues related to the "Inflation Reduction Act (IRA)." The CBO estimates that this measure, intended to lower seniors' Part D premiums artificially, will cost taxpayers at least $7 billion in 2025. This figure includes $2 billion in additional interest on national debt. Furthermore, the CBO indicates that changes to seniors' prescription drug coverage could lead to costs up to $20 billion more than previously expected.

Senator Daines expressed his disapproval of the administration's actions: “This is politics at its worst. Joe Biden and Kamala Harris are trying to hide the fact that their ‘Inflation Reduction Act’ will increase Medicare premiums by having taxpayers bail them out yet again. Montanans aren’t fooled—the only accomplishments of this Administration are sky-high inflation, spiking prescription drug prices and trillions of dollars wasted in useless spending.”

The background provided highlights that Congressional Democrats included policies within the IRA that restructured Medicare Part D prescription drug benefits, with an estimated cost of nearly $30 billion over ten years. Consequently, plan sponsors have increased their bids and base beneficiary premiums for 2025 while reducing available plans for seniors next year.

In response, the Biden-Harris administration introduced a new Medicare Part D Premium Stabilization Demonstration program. This initiative seeks to mitigate these challenges by implementing a uniform reduction of $15 on base beneficiary premiums and capping annual increases at $35 for total Part D premiums. Additionally, it adjusts risk corridors to transfer financial liability from large insurance companies to taxpayers.