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Democrats Are Gaming Medicare Costs This Election Year

Posted on Wednesday, August 28, 2024
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by Outside Contributor
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It’s a captivating story, but one that conveniently obscures an inconvenient truth.

On July 29, the Centers for Medicare & Medicaid Services (CMS) unveiled a startling revelation: Medicare Part D “bid” rates — essentially, the monthly cost of providing coverage to the average senior — were poised to leap from $64.28 in 2024 to a staggering $179.45 in 2025. That’s a 180 percent increase in one year. As bid rates surge, seniors’ premiums inevitably follow suit. The timing of this revelation, just months before a presidential election, was a political catastrophe. 

The culprit? The much-lauded Inflation Reduction Act (IRA), the crown jewel of the Biden-Harris administration.

The law was supposed to cap premium increases at 6 percent. So what happened? The authors of the law designed the cap to only apply to a portion of the premium, not what seniors actually pay for coverage. But the Democratic magicians have a trick up their sleeve: a “demo” program that will make these premium hikes mostly disappear — at least until after the election.

This magical act of fiscal trickery involves a three-year, $72.5 billion taxpayer-funded bailout program. It’s a dazzling display of creative accounting, complete with a $15 add-on payment to insurers for each senior they enroll in a participating plan, a limit on annual premium increases, and reduced risk for insurers. 

The result? A temporary illusion of stability, masterfully crafted to last just long enough to secure votes.

But let’s peek behind the curtain of this elaborate production. The insurers who run the Medicare Part D plans aren’t merely innocent bystanders. These companies will experience fewer losses, as the Biden-Harris administration generously shifts the threshold for loss-sharing far above current levels. In essence, taxpayers, not the insurers, will be left holding the bag for most of this new risk.

It’s a win-win for the Biden-Harris administration and Part D plans — but an absolute loss for the American taxpayer. This trick transforms the Medicare program from a carefully balanced risk-sharing arrangement into a taxpayer-funded safety net for plans. 

The IRA, in its zeal to “fight Big Pharma,” has inadvertently become a sprawling mechanism for raising taxes and expanding subsidies, turning the well-loved, privately managed Part D benefit into a government-run nightmare. It’s a classic case of political overreach, expanding bureaucratic involvement in healthcare at the expense of long-term fiscal stability.

This “demo” is nothing more than a three-year, multibillion-dollar band-aid, desperately applied to mask the true costs of the IRA from seniors — and voters — until after the ballots are counted.

Because as any seasoned observer knows, in politics as in magic, what vanishes must eventually reappear. The premium spike hasn’t been eliminated; it’s merely been postponed. Does anyone believe this program will end next year or in three years? Taxpayers will be on the perpetual hook to subsidize premiums far greater than what Congress authorized.

This “demo” program is not just a stopgap measure, though. It’s a tacit admission of policy failure. If the IRA was the fix it was promised to be, why the need for this elaborate, costly workaround? Why didn’t Congress transition the law into place to ease rising premiums? 

The answer is clear and damning: the IRA, in its current form, is unsustainable without massive, ongoing government bailouts. Congress must work towards a long-term solution to fix the law and rebalance risk across taxpayers, insurers, and Medicare beneficiaries. 

It remains to be seen whether Democrats’ Medicare trick wins them the election. But even if it does, the standing ovation will be short-lived. When the curtain falls and reality sets in, it’s the American people who will be left holding the bill.

Joel White is the President of the Council for Affordable Health Coverage, a non-profit advocacy organization that seeks to lower the cost of health care for all Americans.

Reprinted with Permission from Townhall.com – By Joel White

The opinions expressed by columnists are their own and do not necessarily represent the views of AMAC or AMAC Action.

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Mike
Mike
1 month ago

Anybody over the age of 65, who votes for Cacklin’ Kamala is an idiot and can expect cost to keep going higher and higher.

Dot whitley
Dot whitley
1 month ago

I believe every word of this article. I wish people would wake up before it’s too late. Vote Trump, and every other conservative opportunity there is.

Steve
Steve
1 month ago

Just another scam from the Demonrats. We need the American people to awake from their ignorance. See things as they truly are and retake our country. Please Lord help us.

Bacon Nivison
Bacon Nivison
1 month ago

The Father of Lies is working his demonic rats artistically. Nothing in all of American history has been more important than not allowing the demonic rats to win the upcoming “election.” (the rigging will be spectacular! “Too big to rig is our only hope!”

Madge
Madge
1 month ago

Where on earth are ALL the elected leaders of our government ? I’m so upset on both sides that none are fighting for us , We The People need a government that fights for us and won’t allow this type of thing to happen. My God , what are we supposed to live on!!

Vickie Swing
Vickie Swing
1 month ago

Typical big pharma and gubment collusion.

Leslie
Leslie
1 month ago

Imagine the price increases when the illegals are enrolled. You know if Kamala is elected, and if we don’t get a controlling Senate and House, Medicare for All will be the next big idea the marxists push.

Steven Alton
Steven Alton
1 month ago

I know that it is wishful thinking but wish they would stop screwing Senior Citizens and Veterans.And yes I wish people would wake up. And they keep cheating us out of things we’ll quicker and sooner and being less of a burden on society. they put a medication that I need on hold because I’m trying to get it cheaper. It bad enough that it costs half of my Social Security paycheck.

Vince
Vince
1 month ago

This democrat party that’s wielding this government right are not the senior citizens friend at all. Wake up People, and do your research on this evil socialist party that wants to remain in power.

Stephen Russell
Stephen Russell
1 month ago

& WE LOSE No

jim nicholson and kamala harris with bible and rosary behind them about her anti-catholic acts
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