Biden-Harris ‘Green New Deal’ Pulls from Medicare Funds, Seniors Face Premium Surge
By Jake Beardslee ·
November 17, 2024
Recent discussions have raised concerns about the financial impact of the Inflation Reduction Act (IRA) on Medicare, with some critics alleging a diversion of funds and potential premium increases. The White House / Wikimedia
Ron Fitzwater, Chief Executive Officer of the Missouri Pharmacy Association, stated in an Op-Ed for the Missouri Times, "Nearly two years after its passage, the IRA has diverted nearly $260 billion from the projected Medicare ‘savings’ to pay for special interest handouts." Vlada Karpovich / Pexels
The IRA, passed while Democrats held control of Congress and the presidency, aimed to lower prescription drug costs. However, according to some sources, this has led to a series of financial adjustments. Lance Reis / Pexels
Politico reports that the IRA shifted the initial burden of prescription drug costs from seniors to insurance companies. Fitzwater estimates Medicare premium increases could be as high as 179 percent. To mitigate the immediate impact before the upcoming election, a federal bailout is reportedly being implemented. Pixabay / Pexels
Republican Senator Bill Cassidy of Louisiana criticized this approach, telling Politico, “It’s using the federal treasury for political advantage... This is a way for the executive branch to implement a policy which has very positive political ramifications for them, but with very sketchy legal standing.” Fitzwater estimates that “All told, that puts the entire IRA raid on Medicare at well over $330 billion.” Carol M. Highsmith / Wikimedia
The Inflation Reduction Act has transformed Medicare's dealings with pharmaceutical companies, according to a Wall Street Journal editorial. The legislation empowers Medicare to engage in price negotiations for select medications, though the editorial characterizes this process as "extortion." The White House / Wikimedia
The law allows Medicare to conduct these pricing discussions for "10 to 20 drugs a year and a total of 60 by 2029." The editorial takes issue with the term "negotiate," stating that drug manufacturers who decline to participate or accept government pricing face severe financial consequences, noting that "Drug makers that don't participate or reject the government's price face a daily excise tax that starts at 186% and climbs to 1,900% of a drug's daily revenue." Kaboompics.com / Pexels
The editorial also stated, "The law also requires manufacturers to pay the government rebates on medicines sold to Medicare if they raise prices more than the rate of inflation, and puts them on the hook for more of the entitlement’s Part D costs. Democrats used the resulting estimated ‘savings’ of some $160 billion to pay for the green new deal". SHVETS production / Pexels
The editorial further warned of potential consequences for pharmaceutical innovation, stating “The inevitable, albeit invisible, result of Democrats’ raid on pharmaceutical companies will be fewer new medicines". Tima Miroshnichenko / Pexels
