Inflation Reduction Act Explained! | Andy Mangione on American Sunrise

Vice President Kamala Harris praises the Inflation Reduction Act for allowing Medicare to negotiate drug prices, but David Brody and Andy Mangione argue that it has led to higher premiums and fewer plan choices for seniors, causing increased out-of-pocket costs and market consolidation.Plus, learn how you can join the fight to protect our elections and support AMAC’s efforts to safeguard our democratic process.

Full Transcript:

KAMALA HARRIS CLIP: Vice President, I was proud to cast the tie breaking vote that sent the bill.

Medicare the power to negotiate and let it get to the President’s desk. And I was proud when our President Joe Biden signed that bill into law.

David Brody: As we say in New York, these people are a piece of work. she mentioned Medicare and while she thinks it’s been great for Medicare, seniors are singing a different tune. So let’s bring in AMAC Senior Vice President Andy Mangione, who is with us today. Andy, I tell you what, you have a pulse on the seniors here in America.

So I’m curious, how does the Inflation Reduction Act affect Medicare Part D premiums? Because that’s a, that’s been a key issue here, Andy. 

Andy Mangione: Absolutely, David. Now, keep in mind that the Inflation Reduction Act was intended to make the Medicare Part D benefit richer by mandating lower out of pocket caps and limiting base premium increases.

But because of these mandates, plant sponsors are struggling to offer competitively priced coverage. So in reality, David, we’re seeing the Inflation Reduction Act increase out of pocket cost sharing and consolidate the insurance market. This consolidation leads to fewer plan choices for Medicare beneficiaries and restricts access to care.

The Part D redesigns as a result of the Inflation Reduction Act caused the highest one year increase in premiums since the Medicare Part D benefit was implemented, an over 20 percent increase. And premiums, David, are expected to rise by another 50 percent next year.