Amend Senior Health Inflation Reduction Act
TL/DR –
The Inflation Reduction Act (IRA) of 2022 has led to detrimental effects on Medicare Part D, causing premiums to increase by 21% this year and expected to double in 2025. This has impacted seniors, particularly those on fixed incomes. Meanwhile, Part D beneficiaries are witnessing a decline in the number of plans available, from 1,429 in 2006 to just 709 in 2024.
Medicare Part D Threatened by Inflation Reduction Act
The popularity of Medicare Part D has remarkably held strong over two decades, providing prescription drug coverage for over 50 million beneficiaries. However, the well-received program is now threatened by the structural changes from the Inflation Reduction Act (IRA) of 2022.
Since the IRA’s enforcement, Part D premiums have seen a sharp increase. Average premiums surged by 21% this year and are projected to double by 2025. This hike can significantly impact seniors, especially as many are on fixed incomes. The unexpected cost increase paired with over 17 million older adults already experiencing economic insecurities amplifies the urgency for policymakers’ attention.
Despite amplified payments, beneficiaries are experiencing a sharp decline in available Part D plans. From 1,429 Medicare prescription drug plans (PDPs) in 2006, only 709 are available in 2024. The number of PDPs and firms sponsoring these plans have hit an all-time low. Additionally, one firm has indicated its exit from the market in 2025, precipitating concerns for the senior population.
Seniors’ Part D plans must offer coverage for a range of high-quality medications. With the IRA in place, however, seniors’ coverage options may become fragmented, potentially leading to worse health outcomes.
It is crucial for Congress to safeguard our growing aging population from the adverse effects of the IRA, ensuring they receive the medication and coverage they need.
Mark Gibbons is the President and CEO of RetireSafe, an organization advocating for seniors’ well-being, independence, and rights. Before joining RetireSafe, Gibbons served as a senior director at Caregiver Action Network (CAN) and as Commander in the U.S. Army for 10 years.
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