by John Solomon
In an election-year stunner, the Congressional Budget Office (CBO) is warning the Biden-Harris administration’s new Medicare prescription drug plan could cost taxpayers more than $20 billion over three years.
The budget analysis arm of Congress said the increased costs are due to the government subsidizing many seniors’ premiums by sending money to insurance firms, and it would cost at least $5 billion extra in 2025 alone and add to the deficit.
“The higher costs are attributable to the increases in subsidies for premiums and risk corridors,” the CBO told key lawmakers this week.
House Ways and Means Chairman Jason Smith, R-Mo., House Budget Committee Chairman Jodey Arrington, R-Texas, and Senate Budget Committee Ranking Member Chuck Grassley, R-Iowa, sent a letter to CBO Director Phillip Swagel seeking the analysis of the Biden plan
CBO responded that federal spending would increase between $10 billion and $20 billion in 2025 compared to earlier projections.
Lawmakers blasted the Biden-Harris administration for imposing such new cost on taxpayers
“As predicted, the Biden-Harris Inflation Reduction Act not only quelled investment for new cures, but caused Medicare prescription drug plan premiums to skyrocket, and Democrats are scrambling to cover it up before the election,” Arrington said .
“In July, the Biden-Harris CMS scrambled to create a new federal program that will send billions of tax dollars to large health insurance companies to cover up a massive flaw in their so-called Inflation Reduction Act.” “CMS” stands for “Centers for Medicare & Medicaid Services,” the federal agency tasked with providing health coverage to Americans through Medicare, Medicaid, the Children’s Health Insurance Program, and the Health Insurance Marketplace.
The new average plan bid for a standard Part D coverage increases by 179% for 2025 partly due to an underestimation of federal coverage of the Part D changes, CBO said.
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John Solomon is an award-winning investigative journalist, author and digital media entrepreneur who serves as Chief Executive Officer and Editor in Chief of Just the News. Before founding Just the News, Solomon played key reporting and executive roles at some of America’s most important journalism institutions, such as The Associated Press, The Washington Post, The Washington Times, Newsweek, The Daily Beast and The Hill.
