Administration’s Payoff to Drug Companies Costs Upwards of $15 Billion – IOTW Report

Administration’s Payoff to Drug Companies Costs Upwards of $15 Billion

Issues & Insights

The criminally misnamed “Inflation Reduction Act” that Joe Biden signed on Aug. 16, 2022, after Harris cast the tie-breaking vote, including among its many horrid provisions, several that affected Medicare Part D – the drug benefit for seniors – is set to go into effect in 2025.

Biden and now Harris have been running around claiming that this was a tremendous deal for seniors, except those provisions added huge costs to these drug plans that were going to jack up monthly premiums for this benefit by an average of $110 – a 179% increase!

So, to avoid that, the administration conjured up a “demonstration project” whereby insurance companies would agree to hold monthly premium increases to $35 or less in exchange for a pile of cash.

The Congressional Budget Office figures this will cost $5 billion a year – in borrowed money – plus another $2 billion a year in added interest costs on the national debt.

Critics have pointed out that this wasn’t a “demonstration project,” normally understood as a small-scale effort to test a change in rules governing a program. Instead, it was a subsidy handed out to every insurance company offering Part D plans. More

5 Comments on Administration’s Payoff to Drug Companies Costs Upwards of $15 Billion

  1. Criminally misnamed – like the Affordable Care Act, which Trump still wants to get rid of. Good luck getting that genie back in the bottle. I heard that Biden spent the Medicare money for EV subsidies.

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