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The Biden-Harris administration’s plan to cover up an upcoming spike in Medicare premiums has congressional Republicans crying foul.

The thing about the upcoming spike in premiums is that it’s the fault of the Biden-Harris administration itself.

“The jump in premiums is a consequence of efforts to reduce what older Americans pay for prescription drugs, part of the 2022 Inflation Reduction Act,” according to Politico. “Insurance companies are on the hook for what patients used to pay and are raising drug plan premiums to make up the difference.”

The new premiums are expected to be rolled out in late September, just months away from a pivotal presidential election — one that Democrats are desperate to win.

And so to prevent the spike in premiums from ruining their chances of winning the election, the Biden-Harris administration plans to temporarily subsidize insurers with money from a Medicare trust fund in what’s been dubbed a Part D Premium Stabilization Demonstration.

According to Republicans, it’s a blatant and dishonest election ploy, and they aren’t having it.

“It’s using the federal treasury for political advantage,” Sen. Bill Cassidy told Politico. “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.”

“The Treasury is going to borrow more money to do this. I don’t see them as being particularly hyper aware of the potential cost of all this. I don’t think it matters to them, but it should matter to us as taxpayers,” he added.

Meanwhile, this week Sen. Rand Paul penned a letter to the Department of Justice warning that this plan could amount to a violation of the Hatch Act and calling for an investigation.

“My colleagues and I are concerned that the Biden-Harris Administration is inappropriately using taxpayer funds to mask the defective Medicare Part D policies enacted as part of the Inflation Reduction Act (IRA) of 2022 (P.L. 117-169),” the letter reads.

“Given the IRA’s central role in the Biden-Harris Administration’s presidential campaign, these concerns warrant additional investigation,” it continues.

He went on to accuse the Biden-Harris administration of “deliberately” pursuing this temporary solution “to address rising costs for seniors only in an election year.”

Paul isn’t the only one who’s raised concerns. Last month Reps. Mike Crapo, Cathy McMorris Rodgers, and Jason Smith penned their own letter to U.S. Comptroller General Gene Dodaro slamming the planned Demonstration.

“In response to the Inflation Reduction Act’s (IRA) problematic design features and rushed legislative process, the proposed demonstration employs arbitrary policy levers to achieve short-term objectives,” they wrote.

“The initiative lacks any budgetary analysis, clear statutory basis, or credible research goals. The integrity of the Medicare program and the taxpayer dollars that finance its benefits demand more than partisan aspirations to justify extra-statutory, eleventh-hour policy changes,” they added.

They further noted that many had warned the Biden-Harris administration that Medicare premium spikes would occur if they signed the Inflation Reduction Act into law.

“Prior to the IRA’s enactment, numerous policymakers, economists, and patient advocates warned of the law’s potential for triggering harmful consequences, including cost hikes for seniors and working families,” they explained.

And not surprisingly, since the law’s implementation,” seniors have experienced reduced choices and increased medication coverage costs,” they added.

The Wall Street Journal’s editorial board has also called out the Biden-Harris administration.

“Its insurer payoff will reduce announced Part D premiums before the election, but premiums will inevitably increase later,” the board wrote in an op-ed published last month. “The Administration is buying votes now, but seniors and taxpayers will pay nonetheless.”

Vivek Saxena
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