The following content is sponsored by Americans for Limited Government.
In the wake of President Donald Trump's assertion, it appears that Joe Biden's administration has indeed inflicted significant damage on Medicare. The Inflation Reduction Act (IRA), introduced under Biden's tenure, has resulted in seniors and patients shouldering higher insurance premiums and increased out-of-pocket expenses for diminished healthcare coverage, according to Breitbart.
Biden's tenure was marked by a series of missteps, culminating in a last-ditch effort to impose IRA price controls on 15 prescription drugs. This move was not aimed at assisting seniors, but rather at burdening the incoming Trump administration with onerous regulations. The rushed implementation of this flawed rule by Biden's bureaucrats set Medicare on a path to failure during Trump's term. Unless Trump halts its implementation by February 1, the rule will activate mandates that will make it challenging to reverse.
Biden's IRA price controls are poised to harm seniors and many Americans who rely on these treatments. Mirroring Kamala Harris's price control proposal during her unsuccessful campaign, these price controls are dictated by bureaucratic mandate and enforced with a 95 percent tax on non-compliant companies. Even the Washington Post acknowledged the detrimental impact of these price controls, stating, "Its hard to exaggerate how bad this policy is. It is, in all but name, a sweeping set of government-enforced price controls across every industry, not only food. Supply and demand would no longer determine prices or profit levels. Far-off Washington bureaucrats would. At best, this would lead to shortages, black markets and hoarding, among other distortions seen previous times countries tried to limit price growth by fiat.
Compounding the problem is the fact that our government's colossal health bureaucracy has failed to establish an effective system to regulate drug prices or ensure proper reimbursement for pharmacies. Local pharmacies have already expressed concerns about their ability to supply medications when the program commences in 2026. A survey revealed that over 90 percent of independent pharmacists believe they lack the resources to adapt to the changes.
The IRA has already triggered a surge in Medicare Part D premiums. The Act reduced the out-of-pocket maximum for seniors from approximately $3,300 to $2,000 by transferring the $1,300 difference to insurance companies. While this may initially appear beneficial, insurance companies inevitably pass this cost onto consumers through increased premiums and restricted access to prescription drugs. This year, premiums for Medicare Part D have risen by more than 20 percent for the over 50 million enrolled Americans. Seniors are bearing the brunt of these costs, and taxpayers are also shouldering higher subsidies for these plans. The Congressional Budget Office has projected that the IRA's drug rules alone will inflate Medicare costs by up to $20 billion in 2025.
However, Trump is just beginning to reverse the damage. He has already overturned many of Biden's disastrous mandates and rules. In his initial days back in office, Trump rescinded 78 of Biden's "unpopular, inflationary, illegal, and radical" executive orders and froze spending on IRA programs to shield Americans from these deep state regulations.
Biden may have fractured Medicare, but Trump has the potential to mend it. Under Trump's leadership, premiums could decrease, seniors could have more plan options, and Medicare could function more effectively for everyone. Trump's first step should be to halt the implementation of Biden's IRA drug rule before the week's end.
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