Raw deal: Medicare out-of-pocket costs have soared under Inflation Reduction Act

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By ANDY MANGIONE | AMAC

America’s seniors won’t be fooled. The Biden Administration and its congressional allies passed the ironically named Inflation Reduction Act (IRA) in 2022 without attracting a single Republican vote, touting the legislation as a win for bringing down drug costs for Medicare beneficiaries. What its backers didn’t say is that the law would cause seniors’ out-of-pocket Medicare costs to dramatically increase and irresponsibly limit drug access while siphoning Medicare off to other Democrat pet projects. 

Seniors know that the IRA dealt them a raw deal and they’re furious, as a recent AMAC Action-sponsored poll conducted by ProMark Research reveals. The broad consensus among seniors over the IRA’s impact on Medicare costs, drug access, and green energy subsidies is significant given that the survey is drawn from a diverse group of 800 participants, with political affiliations spanning 39% Republican, 33% Democrat, and 25% Independent and which is 46% men and 54% women. 

Respondents were particularly outraged over the IRA’s changes to Medicare’s prescription drug coverage program (Part D). A staggering 83% expressed concern about rising premiums. Now, keep in mind that the IRA’s backers promised to make the Medicare Part D beneficiaries better off by mandating caps on out-of-pocket expenses and limiting base premium increases. And part of that plan meant shifting costs to insurance companies serving Part D. As a result, Part D premiums in some cases increased by over 400% in just two years. Some companies have left the Part D market, leaving Medicare beneficiaries with fewer plan choices and restricted access to care. 

Adding to their frustration, respondents viewed subsidies to insurance companies meant to hide the rising cost of premiums (in an election year) as a misuse of taxpayer money. An overwhelming 78% of the senior voter respondents opposed ongoing government subsidies to insurance companies. These subsidies were part of an 11th hour “demonstration” gimmick the Biden administration cobbled together to rescue the act from some of it’s most damaging, but predictable, consequences. 

For seniors on fixed incomes, even small increases in healthcare costs can be devastating. Respondents frequently cited fears of being priced out of their plans and losing access to critical medications. The narrowing of prescription drug plan options—down 11% in 2024 and projected to drop another 26% in 2025—compounds their concerns. 

Major drug companies have already cited the IRA as the reason for pulling back on their development of new drugs, because with price controls, they don’t have the money for research. It can cost more than  $2.5 billion just to develop a single drug. This is going to hurt seniors, who  take more prescription medications  than the general population. There has been a reported 36% decline in new drug trials just since the Act’s passage. And 135 curesfor diseases may never be developed as a result of the IRA, according to University of Chicago economist Tom Phillipson. Seniors are justly alarmed over delayed or lost advancement in life-saving treatments and cures, with 86% of seniors in the survey agreeing that efforts to reduce costs should not hinder access to essential medications. 

The survey revealed that seniors are particularly incensed about taxpayer-funded green energy subsidies. The poll reveals that 83% of respondents are either “very concerned” or “somewhat concerned” about billions of taxpayer dollars benefiting a small, wealthier segment of Americans. They’re understandably upset that the IRA is diverting hundreds of billions of dollars from Medicare programs toward green energy schemes such as electric vehicle credits, which almost exclusively benefit people with substantial incomes. The policy could scarcely be more out of touch with the everyday struggles of average Americans, particularly seniors living on fixed incomes. 

One of the strongest takeaways from the AMAC Action poll is the overwhelming support among seniors for reallocating IRA funds back to Medicare. Across the political spectrum, fully 85% of respondents agreed that Congress should redirect funds diverted from Medicare for green energy subsidies and other initiatives to reduce Medicare costs for seniors. Many argued that these funds should be used to lower premiums, reduce out-of-pocket expenses, and expand coverage options—critical priorities for their financial and physical well-being. 

The AMAC Action poll underscores the growing consensus that the current trajectory of Medicare under the IRA is unsustainable and requires immediate attention. Seniors are united in calling for the realignment of federal spending priorities to better serve their healthcare needs. In fact, a decisive 70% of respondents support pausing or suspending the IRA’s implementation to address its flaws or consider a repeal.  

At a minimum, the incoming Trump administration should pause execution of this harmful program long enough to gather feedback and implement needed reforms to mitigate its damaging consequences. Better yet, the Trump administration should use the pause to navigate the law through full repeal. 

Andy Mangione is senior vice president at AMAC Action, the advocacy affiliate of AMAC – Association of Mature American Citizens, an organization representing Americans who are age 50-plus. This column provided courtesy of Real Clear Wire.

15 COMMENTS

  1. Who could possibly be surprised that a Biden Admin “Inflation Reduction Act” would not raise costs for everything?

  2. I hope people wake up and quit voting to tax yourself more by electing politicians who only care about their bank account.
    Just look at congress and the wealth gotten by fleecing the taxpayer and down right stealing money.

  3. Expect the opposite from whatever the law is titled.
    Affordable car act? Increased costs.
    Inflation reduction act? Ballooned inflation

  4. …and I quote “you stupid gullible Americans…they are…” from an old late globalist who didn’t care to share.

    I included.

    Alright.

  5. A SNAFU from the start. Robbing Peter to pay Paul. Diversionary money funneled into green energy programs. The name is even misleading by being the exact opposite of what it purports to be:
    IRA (Inflationary Reduction Act) is actually the Inflationary Production Act (IPA).
    Another Biden act of fraud, deceipt, and intentional financial harm to senior citizens and Americans.

  6. I am willing to bet my savings that every single liberal that cries “you’re against reducing inflation” has not read the actual bill.

    I’ve seen conservatives post the important parts of the bill in response to liberals – only to see them either flat out deny how that segment will increase inflation: or make excuses and lies.

    Every single time.

  7. The author seems misinformed. As a result of Biden’s policies the out-of-pocket cost for medications is capped at $2000 per year for Medicare patients. And the IRA has capped insurance premiums at 8.5% of income. In contrast, we can expect significant increases in the cost of health care and health insurance premiums if Trump and the Republicans are successful in their policies.

    • Who do you think pays everything above the maximums?

      “…the current trajectory of Medicare under the IRA is unsustainable…”

      No, the current trajectory of Medicare (full stop) is unsustainable.

    • YOU are the one misinformed. It is terribly obvious you are not one of the senior Americans affected by this. So you think it is okay to penalize old people huh?

  8. Every person that handles any act between you and your doctors must be paid.
    Does your doctor have
    office dept
    Cleaning personal
    The snow plower/landscaper
    Window washer
    Errands runner
    Computer tech
    Ect.
    Now lets add in the insurance company cost ( see above and repeat)
    Now add in the state employees dealing with your medical decisions and approval
    Now add the fed employees involved with your medical ( Medicare & Medicaid)

    And you wonder why medical cost so much and how you have limited say in your body, care, or cost. So many people are involved that need to be paid and taxed.
    Fyi I paid cash for my cancer because my insurance wanted to decide what care I could have. Cutting out my insurance company allowed me to go radical ….verses just nibble on the cancer to become a steady money maker for the health incorporate.

    Self paying limited the layers of people getting paycheck when you go to a doctor.
    I remember going to the doctors house. The most of the first floor was for his practice. His daughter greeted us and pulled out my file. (No coffee station but a water fountain). Books and magazines and a toy box were in corner and chairs against the wall. Two rooms to see patients and a bathroom. The nurse was the Dr’s wife!

    You got your bill and you paid in cash or installments.
    Not many layers to pay!

    When once

  9. And, where are the dedicated, all-powerful State adoring leftists that normally fill up the comment section on MRAK? Hello??? Anything in support of this steaming pile of dung bill/law?

    • They are afraid of the truth.
      We just need to remember who is responsible for this mess and when we are broke and no more health care we can point at who’s responsible starting with congress and the whit house.

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