U.S. Rep. Gary Palmer is raising alarms over what he calls a deceptive attempt by the Biden administration to cover up the looming impact of its controversial drug pricing policies.
As Medicare prescription premiums are set to rise significantly in 2025, Palmer and his colleagues argue that the administration is using taxpayer dollars to artificially suppress rates ahead of an election year, blinding voters from the true cost of the Democrats’ Inflation Reduction Act.
“This is nothing more than the Biden-Harris administration attempting to mislead the American people instead of correcting their poor policies,” Palmer (R-Hoover) said in a statement. “As a direct result of the Democrats’ Inflation Reduction Act passed in 2021, premiums for Medicare Part D were going to increase for Plan Year 2025. To cover up the foreseeable impact of their policies in October of an election year, the Center for Medicare and Medicaid Services (CMS) announced a plan to use taxpayer dollars to hide these increased costs.”
“Alabamians facing increased costs deserve a reversal of bad policy, not a cover-up.”
In a letter sent this week to the Administrator for the Centers for Medicare and Medicaid Services, Chiquita Brooks-LaSure, Palmer along with the other legislators expressed “significant concerns” regarding the issue.
RELATED: WSJ: Gary Palmer influential in Trump’s energy policy plans for next administration
“Well before 2025 plan year bids were submitted, there were flashing warning signs from prescription drug plans (PDPs) that seniors would face significant increases to their premiums in 2025 as a direct consequence of Biden-Harris policies,” read the letter.
“The Inflation Reduction Act (P.L. 117-169) redesigned the Medicare Part D prescription drug benefit. The most notable changes to the benefit include increasing the liability on Part D plans in the catastrophic phase of the benefit, capping base premium growth for Part D plans by no more than 6% from the previous year through 2028, and capping beneficiary annual out of pocket spending at $2,000, scored at roughly $25 billion over 10 years by the Congressional Budget Office.”
“As a result, in 2024 the average standalone Part D plan premium averaged $48, representing a 21% increase compared to last year, and the number of plans available to seniors decreased by more than 10%,” continued the legislators. “Now, your own bid data for 2025 shows the national average bid increased by 179% from the previous year for Part D plan sponsors.”
“To be clear, we have been long-standing supporters of market-based policies that are designed to keep premiums lower in Part D for seniors on fixed budgets. During the Trump Administration, premiums saw a 12% decrease between 2017-2021 demonstrating a stable and efficient program.”
“In fact, at the time the Inflation Reduction Act passed, your own agency announced a
1.8% premium decrease between Plan Year 2022 and Plan Year 2023.”
The Medicare Part D premium stabilization demonstration tests if additional policy changes stabilize year-over-year changes in premiums for participating stand-alone prescription drug plans.
Austen Shipley is a staff writer for Yellowhammer News. You can follow him on X @ShipleyAusten
