Biden’s plans will increase costs for seniors, says Anuzis

President Biden’s Impact on Inflation

Written by: Saul Anuzis

President Joe Biden’s administration kicked off with a massive spending spree that led to a significant inflation spike of 9.1% in June 2022, marking the highest rate in over four decades.

Biden’s Response to Inflation

The response from the Biden administration to combat this inflation surge was to execute another multi-trillion-dollar spending frenzy. This time, the president repackaged an already struggling bill package, labeling it the “Inflation Reduction Act.”

The Impact on Health Care Costs

Despite its optimistic title, the “Inflation Reduction Act” failed to curb inflation and instead introduced numerous economically unsound Democratic priorities. These priorities included measures purported to lower healthcare costs for patients.

Rise in Medicare Part D Premiums

One of the most notable impacts of the legislation has been the surge in monthly premiums for Medicare Part D, a program that offers prescription drug coverage to over 50 million older Americans. The structural changes made by the IRA have led to a substantial increase in premiums, potentially eliminating the promised savings for seniors.

For instance, premiums for standalone prescription drug plans have surged by an average of 21% in 2024. Major Medicare insurance providers such as Cigna, Humana, and Aetna witnessed premium hikes ranging from 33% to 57% in a single year.

Future Outlook

Projections indicate that Medicare premiums are likely to become even more costly in 2025 as the effects of the new policies take hold, with estimates suggesting a nearly 50% increase.

The financial strain on households could be overwhelming, especially for seniors on fixed incomes who have already experienced a devaluation of their savings due to inflation.

Challenges Faced by Medicare Enrollees

Despite generally positive sentiments towards Medicare, patients are grappling with rising premiums and cost-sharing requirements for medical services. The dwindling options for standalone plans pose challenges for seniors seeking affordable coverage that suits their needs.

The Need for Reform

It is evident that President Biden’s approach to reducing healthcare costs has not yielded the desired results. There is a pressing need for a comprehensive reassessment and overhaul of the current policies to address the escalating expenses faced by Medicare enrollees.

Saul Anuzis is president of 60 Plus, the American Association of Senior Citizens. This article was originally published on InsideSources.com. Share your feedback at AzOpinions@iniusa.org.