Lubbock Times

The Congressional Budget Office (CBO) has released an analysis of a new program by the Biden-Harris administration aimed at addressing issues related to the Inflation Reduction Act (IRA). According to the CBO, this initiative, which seeks to reduce seniors' Part D premiums, is projected to cost taxpayers at least $7 billion in 2025. Over three years, the program could potentially cost more than $21 billion.

This analysis was requested by several Republican leaders: House Budget Committee Chairman Jodey Arrington, Senate Budget Committee Ranking Member Chuck Grassley, Senate Finance Committee Ranking Member Mike Crapo, House Energy and Commerce Committee Chair Cathy McMorris Rodgers, and House Ways and Means Committee Chairman Jason Smith.

Chairman Arrington stated that "the Biden-Harris Inflation Reduction Act not only quelled investment for new cures but caused Medicare prescription drug plan premiums to skyrocket." He added that Democrats are attempting to conceal these issues before the election. Arrington further criticized the administration's decision to create a federal program that allocates billions of tax dollars to health insurance companies.

Ranking Member Grassley expressed concerns about changes made two years ago when Democrats enacted major Medicare reforms. He described the current plan as "a dishonest election-year gimmick" intended to cover up negative consequences. Grassley accused the administration of spending taxpayer money without addressing underlying problems.

Ranking Member Crapo echoed these sentiments, stating that "the Congressional Budget Office has confirmed that the Biden-Harris Administration’s latest 2024 gimmick will spend billions in taxpayer dollars." He criticized what he sees as executive overreach and political maneuvering.

Chair McMorris Rodgers also weighed in on the issue. She remarked that "the CBO confirms the $7 billion cost for just one year of the Biden-Harris administration’s politically motivated scheme." She urged President Biden and Vice President Harris to abandon this plan and pursue bipartisan solutions.

Chairman Smith highlighted concerns regarding increased costs resulting from policies tied to Vice President Harris’ tie-breaking vote in passing the IRA. He described efforts by the administration as an attempt "to sweep the mess under the rug."

The background provided indicates that Congressional Democrats included significant changes in Medicare Part D within IRA policies. These changes have led sponsors of Medicare prescription drug plans (PDPs) to increase their bids and premiums while reducing available plans for seniors next year.

In response, on July 29, 2024, CMS announced a demonstration program designed to stabilize premiums by directing federal funds toward large health insurers. This move aims at artificially lowering seniors' Part D premium costs through financial adjustments affecting taxpayers.

Critics argue this approach shifts liability onto taxpayers while maintaining higher premium rates compared with previous administrations. The Wall Street Journal Editorial Board recently referred to it as “a Medicare election bribe for seniors.”

House Budget Committee Republicans continue investigating potential budgetary impacts associated with this demonstration program amid broader concerns about executive spending under current leadership.