Biden’s Inflation Act Negatively Impacts Seniors
TL/DR –
The Inflation Reduction Act (IRA), introduced by President Joe Biden, was intended to curb inflation but is criticized for actually escalating it, notably as it expanded subsidies for green energy while attacking Medicare Part D plans. A study by the American Action Forum suggests the IRA led to problems for senior citizens on Medicare Part D due to inflated costs and calls for its repeal. The IRA also allowed for high taxes on drug manufacturers, a precedent the author suggests should be opposed by the Republican-controlled House and Senate, who also have the opportunity to repeal the IRA completely.
Understanding the Impact of Biden’s Inflation Reduction Act
The Inflation Reduction Act (IRA) introduced by former President Joe Biden, was presented as a measure to curb inflation. However, after being integrated into our fiscal system, it has proven to be an inflation-driving package.
In a PBS interview, a Harvard University Economist expressed scepticism about the IRA’s impact on inflation. The Act expanded subsidies for green energy initiatives while undermining Medicare Part D plans, disproportionately causing inflation for senior citizens on Medicare Part D.
An investigation by the American Action Forum highlights the IRA’s shortcomings. The study criticizes the Part D redesign, stating that its flawed implementation threatens higher premiums and fewer Part D plans.
Medicare Part D was launched in 2006 to allow private insurance plans to provide drug benefits. It has faced opposition from those advocating a single-payer socialist system. Despite its effectiveness, progressives have worked diligently to hinder it.
The IRA sought to alter the program by imposing more government price controls on prescription drugs. Contrary to claims, the American Action Forum found that Biden’s reform only helps 5.6 out of 65 million beneficiaries, proving the program’s significant shortcomings.
The law provision that allows high taxes on drug manufacturers sets a worrying precedent that the Republican-led House and Senate should oppose. Amidst the budget reconciliation process, there is an opportunity to repeal the IRA.
Exploring the Impact on Green Energy and Medicare Funding
The Act incorporated $488 billion in energy spending and credits, utilising the purported Medicare savings of $266 billion. Effectively, the IRA hampered Medicare Part D to fund a radical environmental strategy.
After Trump’s 2024 victory, multiple reports suggested that Biden’s team was rushing to distribute and secure the energy spending. Unfortunately, seniors bore the brunt of this hasty action, as their affordable health insurance was compromised.
Republicans have a chance to repeal one of the most damaging legislations passed through Congress. The Inflation Reduction Act did little to curb inflation but instead drove up government spending on green energy programs while undermining the Medicare Part D program. A complete repeal is in order.
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