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Report: Biden Is Cutting Medicare Benefits Thru Inflation Reduction Act

Two economists reported Tuesday in a Wall Street Journal op-ed that President Joe Biden is cutting Medicare benefits through the so-called Inflation Reduction Act, which cuts payments for prescription drugs for seniors.

Casey B. Mulligan and Tomas J. Philipson wrote:

President Biden has accused Republicans of scheming to cut Medicare. In fact it is his signature legislation, the Inflation Reduction Act, that will lead to benefit cuts and premium increases for seniors. Medicare’s popular drug-coverage program is headed for a painful amputation.

The private plans participating in Medicare’s prescription-drug program, known as Part D, currently draw on three sources of revenue to finance prescriptions: out-of-pocket payments from patients, premium payments made by plan members, and subsidies from the federal government. In 2025, under the Inflation Reduction Act, both government subsidies and out-of-pocket payments by patients are scheduled to be cut sharply. The difference will have to be made up by premiums. But the statute inhibits this third revenue source, which is also subsidized, from increasing more than 6%. That’s hardly enough to cover inflation, let alone compensate for the other two revenue losses.

We estimate that beginning in 2025, plan subsidies—specifically, the reinsurance subsidies for the beneficiaries with the most drug spending—will be cut $30 billion, out of revenue that currently totals about $110 billion. With $30 billion less to finance prescription benefits, something will have to give. Plans currently have far too little profit to span the chasm that the Inflation Reduction Act opens between expenses and revenue.

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18 thoughts on “Report: Biden Is Cutting Medicare Benefits Thru Inflation Reduction Act”

  1. He must have a Death Wish !!! This will Never Stand !!! Benefits need to INCREASE !!! STOP WAISTING
    BILLIONS overseas & on ILLEGALS !!!!!

  2. Biden is actually a space alien from another planet, sent here to conquer earth and enslave humans. It’s true, but the mainstream media won’t report it because they’re collaborating with the aliens in exchange for better treatment after the takeover is complete. Soros is the aliens’ banker and Gates helps them with earth technology. Believe me, or don’t. Doesn’t really matter except I’m still free because at least I know the truth.

  3. Social Security and Medicare is a JOKE. I can’t believe that people that ESPOUSE to be SO Conservative yet don’t have savings, investments, and private insurance. If you don’t you are conservative in idealogy alone and not practical and hanging on the Federal Teet just like Democrats.

  4. No, it is not a joke. Some people were busy working and trying to raise their families and there was never enough money to save. Not everyone made big bucks, just eked out a living, so they have no 401Ks , IRAs, savings, bonds or investment to fall back on. All they have is social security and medicare! Does that mean they should be starved out by this good for nothing POS Biden and his phony administration? They stole it or we would have a good president that cares about the country and it’s people. What a glorious day it will be when he and his ilk are gone!!

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