East Idaho Times

The Congressional Budget Office (CBO) has released its analysis of a Biden-Harris administration program aimed at addressing the shortcomings of the Inflation Reduction Act (IRA). According to CBO estimates, this initiative will cost taxpayers an estimated $7 billion in 2025, including $2 billion in additional interest on national debt. The report also suggests that changes to seniors' prescription drug coverage could result in up to $20 billion more in costs than previously anticipated.

The analysis was conducted following a request from several congressional members, including U.S. Senate Finance Committee Ranking Member Mike Crapo and U.S. Senate Budget Committee Ranking Member Chuck Grassley, among others.

Ranking Member Crapo criticized the administration's approach: “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.”

Grassley echoed these sentiments: “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.”

U.S. House Budget Committee Chair Jodey Arrington commented on the situation: “As predicted, the Biden-Harris Inflation Reduction Act not only quelled investment for new cures but caused Medicare prescription drug plan premiums to skyrocket."

Chair Cathy McMorris Rodgers added her concerns about taxpayer costs: “The CBO confirms the $7 billion cost for just one year of the Biden-Harris administration’s politically motivated scheme.”

Finally, Chair Jason Smith stated: “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.”

These developments follow policy changes made by congressional Democrats within the IRA that redesigned Medicare Part D prescription drug benefits. As a result, plan sponsors have increased their bids and base beneficiary premiums for 2025 while reducing available plans.

In response, on July 29, 2024, a new Medicare Part D Premium Stabilization Demonstration program was announced by CMS. This program aims to lower seniors’ Part D premiums by sending federal funds to large insurance companies.

Under this program's guidelines, financial liability is shifted onto taxpayers through measures such as reducing base beneficiary premiums and adjusting risk corridors.

According to data presented by critics of current policies compared with previous administrations', average Medicare Part D premiums have increased significantly since 2021 under President Biden's leadership.