The Biden Administration and its congressional allies passed the ironically named Inflation Reduction Act (IRA) in 2022 without attracting a single Republican vote, touting the legislation as a win for bringing down drug costs for Medicare beneficiaries. What its backers didn’t say is that the law would cause seniors’ out-of-pocket Medicare costs to dramatically increase and irresponsibly limit drug access while siphoning Medicare off to other Democrat pet projects.
Seniors know that the IRA dealt them a raw deal and they’re furious, as a recent AMAC Action-sponsored poll conducted by ProMark Research reveals. The broad consensus among seniors over the IRA’s impact on Medicare costs, drug access, and green energy subsidies is significant given that the survey is drawn from a diverse group of 800 participants, with political affiliations spanning 39% Republican, 33% Democrat, and 25% Independent and which is 46% men and 54% women.
Respondents were particularly outraged over the IRA’s changes to Medicare’s prescription drug coverage program (Part D). A staggering 83% expressed concern about rising premiums. Now, keep in mind that the IRA’s backers promised to make the Medicare Part D beneficiaries better off by mandating caps on out-of-pocket expenses and limiting base premium increases. And part of that plan meant shifting costs to insurance companies serving Part D. As a result, Part D premiums in some cases increased by over 400% in just two years. Some companies have left the Part D market, leaving Medicare beneficiaries with fewer plan choices and restricted access to care.
Adding to their frustration, respondents viewed subsidies to insurance companies meant to hide the rising cost of premiums (in an election year) as a misuse of taxpayer money. An overwhelming 78% of the senior voter respondents opposed ongoing government subsidies to insurance companies. These subsidies were part of an 11th hour “demonstration” gimmick the Biden administration cobbled together to rescue the act from some of it’s most damaging, but predictable, consequences.
For seniors on fixed incomes, even small increases in healthcare costs can be devastating. Respondents frequently cited fears of being priced out of their plans and losing access to critical medications. The narrowing of prescription drug plan options – down 11% in 2024 and projected to drop another 26% in 2025 – compounds their concerns.
Major drug companies have already cited the IRA as the reason for pulling back on their development of new drugs, because with price controls, they don’t have the money for research. It can cost more than $2.5 billion just to develop a single drug. This is going to hurt seniors, who take more prescription medications than the general population. There has been a reported 36% decline in new drug trials just since the Act’s passage. And 135 cures for diseases may never be developed as a result of the IRA, according to University of Chicago economist Tom Phillipson. Seniors are justly alarmed over delayed or lost advancement in life-saving treatments and cures, with 86% of seniors in the survey agreeing that efforts to reduce costs should not hinder access to essential medications.
The survey revealed that seniors are particularly incensed about taxpayer-funded green energy subsidies. The poll reveals that 83% of respondents are either “very concerned” or “somewhat concerned” about billions of taxpayer dollars benefiting a small, wealthier segment of Americans. They’re understandably upset that the IRA is diverting hundreds of billions of dollars from Medicare programs toward green energy schemes such as electric vehicle credits, which almost exclusively benefit people with substantial incomes. The policy could scarcely be more out of touch with the everyday struggles of average Americans, particularly seniors living on fixed incomes.
One of the strongest takeaways from the AMAC Action poll is the overwhelming support among seniors for reallocating IRA funds back to Medicare. Across the political spectrum, fully 85% of respondents agreed that Congress should redirect funds diverted from Medicare for green energy subsidies and other initiatives to reduce Medicare costs for seniors. Many argued that these funds should be used to lower premiums, reduce out-of-pocket expenses, and expand coverage options – critical priorities for their financial and physical well-being.
The AMAC Action poll underscores the growing consensus that the current trajectory of Medicare under the IRA is unsustainable and requires immediate attention. Seniors are united in calling for the realignment of federal spending priorities to better serve their healthcare needs. In fact, a decisive 70% of respondents support pausing or suspending the IRA’s implementation to address its flaws or consider a repeal.
At a minimum, the incoming Trump administration should pause execution of this harmful program long enough to gather feedback and implement needed reforms to mitigate its damaging consequences. Better yet, the Trump administration should use the pause to navigate the law through full repeal.
• This article was originally published by RealClearPolicy and made available via RealClearWire.
