A number of Democrats facing tough reelection fights next year are being haunted by their past support for one of President Biden’s signature pieces of legislation that experts say is causing a “dramatic rise” in Medicare costs for seniors. Those Democrats, who largely represent states being targeted by Republicans as the biggest flip opportunities in the 2024 elections, all touted their support for the Inflation Reduction Act (IRA) and said it would lower health care costs for seniors, specifically when it came to prescription drugs. However, experts now reveal that the IRA is driving up Medicare Part D prescription drug premiums by as much as 57% in some states, compared to 2023.
Critics argue that despite the Democrats’ promises, the IRA is failing to deliver on its goal of reducing costs for seniors. The legislation, which was enacted to fulfill President Biden’s promise to lower costs for families and tackle the climate crisis, seems to be having the opposite effect. Medicare recipients are experiencing significantly higher premiums, putting a strain on their budgets.
Senators Jacky Rosen (D-Nev.), Bob Casey (D-Pa.), Jon Tester (D-Mont.), Sherrod Brown (D-Ohio), and Tammy Baldwin (D-Wis.) were among the Democrats who celebrated the IRA and its supposed benefits. However, recent reports indicate that the average prescription drug plan premium in 2024 will be 21% higher than in 2023. Additionally, a study by HealthView Services reveals that Medicare Part D drug costs have surged by as much as 57% in certain states.
Experts suggest that the IRA’s provision of setting a $2,000 cap on out-of-pocket spending for drugs per year may be a contributing factor to the increased costs. While this provision benefits those with significant medical bills, it ultimately leads to insurers passing on the remaining costs to seniors themselves.
Critics further point out that the IRA did not cap the growth in individual plan premiums, resulting in higher-than-expected costs for Part D enrollees. The Kaiser Family Foundation warns that the average projected premium for 2024 will be 21% higher than in 2023 due to increased plan costs and changes mandated by the IRA.
Democrats such as Rep. Ruben Gallego (D-Ariz.) and Rep. Elissa Slotkin (D-Mich.) have also touted the IRA’s benefits, emphasizing lower costs for seniors. However, the reality seems to be different, as seniors in Arizona and Michigan are still grappling with high prescription drug expenses.
Despite the backlash, Democrats maintain that they are committed to lowering costs for working families and taking on Big Pharma and insurance companies. Sen. Tester, for instance, highlights his efforts to cap the price of insulin at $35 and limit annual out-of-pocket drug spending for Montanans on Medicare.
As the 2024 elections approach, these rising Medicare costs and the failure of the IRA to deliver on its promises could pose significant challenges for Democrats facing tough reelection battles. Republicans have seized on this issue, targeting these Democrats as flip opportunities in their bid to regain control of Congress.
In conclusion, the Inflation Reduction Act, touted by Democrats as a solution to lower Medicare costs for seniors, is instead driving up premiums and putting a strain on seniors’ budgets. Despite promises and celebrations, experts warn that the IRA is failing to deliver on its goals. As the 2024 elections loom, Democrats face an uphill battle in defending their support for this legislation.
