Biden and Harris Drained Medicare to Fund Green Initiatives: Premiums Expected to Surge

The Inflation Reduction Act (IRA), passed by Democrats when they had full control of Washington, D.C., has led to a series of consequences, notably escalating Medicare expenses for American seniors.

"Nearly two years after its passage, the IRA has diverted nearly $260 billion from the projected Medicare ‘savings’ to pay for special interest handouts," wrote Ron Fitzwater, CEO of the Missouri Pharmacy Association, in an Op-Ed for the Missouri Times. He pointed out the funds have gone toward significant tax credits for expensive electric vehicles, large subsidies benefiting health insurer-PBM corporations, and healthcare programs for undocumented immigrants.

"The Biden-Harris administration is not protecting Medicare; they’re stealing from it," Fitzwater emphasized.

According to Politico, this series of events began when the legislation shifted prescription drug costs from seniors to insurance companies.

Unsurprisingly, the next consequence emerged: Insurance companies raised their premiums for 2025.

Fitzwater highlighted in his Op-Ed that the increases are projected to soar by as much as 179 percent. However, with the looming election, the administration took another step: a federal bailout, essentially shifting the financial impact onto taxpayers via the federal treasury.

“It’s using the federal treasury for political advantage,” stated Republican Senator Bill Cassidy of Louisiana. He further remarked, “This is a way for the executive branch to implement a policy which has very positive political ramifications for them, but with very sketchy legal standing.”

Fitzwater estimates that the entire cost of what he describes as the "IRA raid on Medicare" will exceed $330 billion.

The act's adjustments to Medicare have also affected pharmaceutical companies. An editorial from The Wall Street Journal described the situation:

“The IRA let Medicare ‘negotiate’ prices for 10 to 20 drugs a year, reaching a total of 60 by 2029. Negotiate is a euphemism for extortion," the editorial stated. "Drug makers that don’t participate or decline the government’s price face a daily excise tax beginning at 186% and increasing up to 1,900% of the drug’s daily revenue."

Additionally, the legislation mandates that manufacturers issue rebates to the government on medications sold to Medicare if prices increase faster than inflation. It also places a greater financial burden on these companies for Medicare Part D expenses. The Democrats used approximately $160 billion of the estimated "savings" to fund their environmental projects.

“But subsidized solar panels won’t help if you get sick,” the editorial warned. It concluded that the hidden consequence of targeting pharmaceutical companies would be "fewer new medicines," a long-term cost of this financial diversion.