{"id":2347888,"date":"2024-10-01T07:35:02","date_gmt":"2024-10-01T11:35:02","guid":{"rendered":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-preelection-insurance-bailout-will-save-seniors-just-1-63\/"},"modified":"2024-10-01T07:38:00","modified_gmt":"2024-10-01T11:38:00","slug":"bidens-preelection-insurance-bailout-will-save-seniors-just-1-63","status":"publish","type":"post","link":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/bidens-preelection-insurance-bailout-will-save-seniors-just-1-63\/","title":{"rendered":"Biden&#8217;s Preelection Insurance Bailout Will Save Seniors Just $1.63"},"content":{"rendered":"<aside class=\"mashsb-container mashsb-main mashsb-stretched\"><div class=\"mashsb-box\"><div class=\"mashsb-count mash-medium\" style=\"float:left\"><div class=\"counts mashsbcount\">18<\/div><span class=\"mashsb-sharetext\">SHARES<\/span><\/div><div class=\"mashsb-buttons\"><a class=\"mashicon-facebook mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/www.facebook.com\/sharer.php?u=https%3A%2F%2Fwww.conservativenewsdaily.net%2Fbreaking-news%2Fbidens-preelection-insurance-bailout-will-save-seniors-just-1-63%2F\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Facebook<\/span><\/a><a class=\"mashicon-twitter mash-medium mash-nomargin mashsb-noshadow\" href=\"https:\/\/twitter.com\/intent\/tweet?text=&amp;url=https:\/\/www.conservativenewsdaily.net\/breaking-news\/?p=2347888&amp;via=ConservNewsDly\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Twitter<\/span><\/a><a class=\"mashicon-subscribe mash-medium mash-nomargin mashsb-noshadow\" href=\"#\" target=\"_top\" rel=\"nofollow\"><span class=\"icon\"><\/span><span class=\"text\">Subscribe<\/span><\/a><div class=\"onoffswitch2 mash-medium mashsb-noshadow\" style=\"display:none\"><\/div><\/div>\n            <\/div>\n                <div style=\"clear:both\"><\/div><\/aside>\n            <!-- Share buttons by mashshare.net - Version: 4.0.47--><p>The \u2064summary discusses a recent initiative by the Biden administration called the \u200d&#8221;premium stabilization demonstration,&#8221; \u200bwhich aims to reduce premiums for Medicare prescription drug plans\u2063 while increasing benefits. This \u2064program, perceived by some as \u2063a \u200cbailout funded by taxpayers, seeks to mitigate significant projected premium increases\u200d resulting from changes embedded in the Inflation Reduction Act passed in \u20622022. These changes include a cap\u2063 on \u200bout-of-pocket drug expenses\u2062 for seniors and expanded vaccine\u2064 coverage, which would have otherwise caused a\u2062 rise in premiums. \u200c <\/p>\n<p>Standalone Medicare\u200b Part D plans saw a sharp increase in \u200dpremiums, and the number of these plans has declined, raising concerns about potential enrollment \u200ddisruptions ahead of\u200b the <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/the-most-vicious-attacks-of-the-2024-gop-primary-wont-come-from-presidential-rivals-but-from-the-press\/\" title=\"The Most Vicious Attacks Of The 2024 GOP Primary Won\u2019t Come From Presidential Rivals, But From The Press\">open enrollment period<\/a>. The Biden administration implemented the program to counteract the expected fallout and\u2062 prevent millions \u2063of seniors from facing \u200cpremium hikes. Critics argue \u200dthat this reliance on taxpayer dollars \u2063is a costly way to support insurance\u200c companies and filter costs away from beneficiaries. <\/p>\n<p>In this\u200b context, \u2062the\u2063 program bears similarities to prior initiatives under Obama&#8217;s\u200b administration, where\u200b financial support was also granted to Medicare Advantage plans. As the cost implications\u2064 of the new \u200cstabilization program remain unclear, estimates \u200dsuggest it could cost taxpayers around $5 \u200cbillion for its first year. The article \u200dargues for \u2064a halt to such financial\u200d maneuvers,\u2064 emphasizing transparency and accountability in government actions.  <\/p>\n<p class=\"readmore\">\n    <button onclick=\"showReadMore()\" id=\"readmorebtn\">Read more&#8230;<\/button>\n<\/p>\n<hr id=\"line\">\n<span id=\"more\"><\/p>\n<div>\n<p>How can a health insurance plan offer increased benefits from one year to the next while simultaneously lowering premiums? Simple: Taxpayers pay the difference.<\/p>\n<p>Such are the results from the &ldquo;<a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/medicare-agency-just-gave-kamala-an-in-kind-contribution\/\" title=\"Medicare Agency Just Gave Kamala An In-Kind Contribution\">premium stabilization demonstration&#038;rdquo<\/a>; &mdash; read: <a href=\"https:\/\/thefederalist.com\/2024\/08\/12\/medicare-agency-just-gave-kamala-harris-an-in-kind-contribution-with-your-tax-dollars\/\" target=\"_blank\" rel=\"noreferrer noopener\">bailout<\/a> &mdash; of the Medicare prescription drug program that the Biden administration <a href=\"https:\/\/www.cms.gov\/newsroom\/fact-sheets\/cms-releases-2025-medicare-part-d-bid-information-and-announces-premium-stabilization-demonstration\" target=\"_blank\" rel=\"noreferrer noopener\">announced this summer<\/a>. While Kamala Harris, Biden&rsquo;s putative successor, and Democrats will breathe a sigh of relief at the news of premium reductions, taxpayers will end up the losers from this costly giveaway to insurance companies.<\/p>\n<h2>Bailout to Counteract Skyrocketing Premiums<\/h2>\n<p>The latest developments come as a consequence of the (misnamed) Inflation Reduction Act that Democrats passed in 2022. The richer benefits &mdash; a new cap on seniors&rsquo; out-of-pocket drug expenses, coverage of vaccines, etc. &mdash; coupled with structural changes to the Part D pharmaceutical benefit, would on their own lead to significant premium increases.<\/p>\n<p>In fact, premiums for standalone Part D plans &mdash; that is, plans that only cover prescription drugs &mdash; rose by an <a href=\"https:\/\/www.kff.org\/medicare\/issue-brief\/medicare-part-d-in-2024-a-first-look-at-prescription-drug-plan-availability-premiums-and-cost-sharing\/\" target=\"_blank\" rel=\"noreferrer noopener\">estimated<\/a> 21 percent from 2023 to 2024, and the number of plans and firms offering plans each dropped to all-time lows. When plans made their bids for 2025, the Centers for Medicare and Medicaid Services (CMS) <a href=\"https:\/\/www.cms.gov\/newsroom\/fact-sheets\/cms-releases-2025-medicare-part-d-bid-information-and-announces-premium-stabilization-demonstration\" target=\"_blank\" rel=\"noreferrer noopener\">admitted<\/a> that insurers&rsquo; &ldquo;resulting premium changes could create disruptive enrollment shifts.&rdquo; In other words, the Biden administration and Democrats faced the prospect that millions of seniors could receive word of major premium spikes, and\/or insurers dropping coverage entirely, when Medicare open enrollment starts on Oct. 15, just weeks before the election.<\/p>\n<p>In addition to the electoral implications of the IRA&rsquo;s changes, Democrats also faced an ideological quandary. Increasing premiums for <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/biden-backed-incumbent-loses-primary-to-ultra-progressive-newcomer\/\" title=\"Biden-Backed Incumbent Loses Primary To Ultra-Progressive Newcomer\">prescription drug coverage<\/a> would likely prompt more seniors to switch from traditional Medicare to Medicare Advantage, which is delivered by <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wisconsin-dem-senate-candidate-announces-support-for-medicare-for-all\/\" title=\"Wisconsin Dem Senate Candidate Announces Support for Medicare for All\">private health plans<\/a>. Because Medicare Advantage plans also cover hospital and physician visits, they have a greater ability to absorb the higher costs of the new drug benefits than standalone plans that only cover prescriptions.<\/p>\n<p>The numbers bear out this dynamic: Medicare Advantage plans have skyrocketed in both number and enrollment, even as the number of standalone Part D plans <a href=\"https:\/\/www.kff.org\/medicare\/issue-brief\/medicare-part-d-in-2024-a-first-look-at-prescription-drug-plan-availability-premiums-and-cost-sharing\/\" target=\"_blank\" rel=\"noreferrer noopener\">declined<\/a> by 25 percent from 2020 through 2024. Those facts gave Democrats, who naturally favor government-run Medicare (and government-run anything), added incentive to act.<\/p>\n<h2>High Costs Not Fully Quantified<\/h2>\n<p>Rather than facing the consequences of the law they rammed through Congress, the Biden administration decided to tap taxpayers instead. CMS <a href=\"https:\/\/www.cms.gov\/newsroom\/fact-sheets\/cms-releases-2025-medicare-part-d-bid-information-and-announces-premium-stabilization-demonstration\" target=\"_blank\" rel=\"noreferrer noopener\">created<\/a> the bailout program in late July and <a href=\"https:\/\/www.cms.gov\/newsroom\/fact-sheets\/medicare-advantage-and-medicare-prescription-drug-programs-remain-stable-cms-implements-improvements\" target=\"_blank\" rel=\"noreferrer noopener\">announced the results<\/a> recently. For 2025, premiums for standalone Part D plans (i.e., the plans for which the &ldquo;demonstration&rdquo; was created) will fall by an average $1.63 per month.<\/p>\n<p>Unfortunately, the Congressional Budget Office has not yet published any formal estimates of what this bailout will cost the taxpayers footing the bill. One <a href=\"https:\/\/www.politico.com\/newsletters\/politico-pulse\/2024\/08\/12\/bidens-billion-dollar-medicare-bet-00173574\" target=\"_blank\" rel=\"noreferrer noopener\">early report<\/a> indicated a rough estimate of $5 billion &mdash; this for just the first year of a program <a href=\"https:\/\/www.cms.gov\/newsroom\/fact-sheets\/cms-releases-2025-medicare-part-d-bid-information-and-announces-premium-stabilization-demonstration\" target=\"_blank\" rel=\"noreferrer noopener\">scheduled to run<\/a> for &ldquo;at least two subsequent demonstration years.&rdquo;<\/p>\n<p>In its multibillion-dollar cost and lack of clear objectives, this program also echoes a similar &ldquo;demonstration program&rdquo; whereby the Obama administration <a href=\"https:\/\/thefederalist.com\/2024\/08\/12\/medicare-agency-just-gave-kamala-harris-an-in-kind-contribution-with-your-tax-dollars\/\" target=\"_blank\" rel=\"noreferrer noopener\">shoveled money<\/a> at Medicare Advantage insurers shortly after Obamacare passed, largely to stop them from cutting plan offerings as Barack Obama ran for reelection. In that case, the Government Accountability Office <a href=\"https:\/\/www.gao.gov\/assets\/gao-12-409r.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">cited<\/a> a lack of legal authority in <a href=\"https:\/\/www.gao.gov\/assets\/b-323170.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">recommending<\/a> that CMS nix the &ldquo;demonstration&rdquo; entirely &mdash; a recommendation that the Biden administration ignored.&nbsp;<\/p>\n<h2>Stop the Shenanigans<\/h2>\n<p>Republicans have tried to expose the Biden administration&rsquo;s actions, at least to the extent that they can. Leaders of several committees <a href=\"https:\/\/d1dth6e84htgma.cloudfront.net\/letter_to_gao_requesting_review_of_proposed_demonstration_fc3014905c.pdf\" target=\"_blank\" rel=\"noreferrer noopener\">wrote a letter<\/a> in August asking for the Government Accountability Office to investigate this legally questionable bailout. The House Oversight Committee had organized a <a href=\"https:\/\/oversight.house.gov\/hearing\/meddling-with-medicare-the-biden-harris-cover-up\/\" target=\"_blank\" rel=\"noreferrer noopener\">September hearing<\/a> on the matter, although schedule changes meant the hearing had to be postponed until Congress returns after the election.<\/p>\n<p>Letters and hearings aside, the best response lies in Congress finally exercising its &ldquo;power of the purse&rdquo; and passing legislation to specify that these types of demonstration projects cannot spend any more money than allowed under current law. As I <a href=\"https:\/\/thefederalist.com\/2024\/08\/12\/medicare-agency-just-gave-kamala-harris-an-in-kind-contribution-with-your-tax-dollars\/\">previously noted<\/a> at The Federalist, Democrats have shown a growing proclivity in recent years to shovel money at insurance companies to solve their political problems.<\/p>\n<p>At a time when the federal government has incurred over $35 trillion in debt, stopping these types of bailouts would represent a rare instance of fiscal common sense. It also would restore the rule of law and rein in the crony capitalism that explains why the country loves to hate Washington.<\/p>\n<hr>\n<p>      Chris Jacobs is founder and CEO of Juniper Research Group, a <a href=\"https:\/\/www.conservativenewsdaily.net\/breaking-news\/game-show-judges-assess-players-on-their-unknown-knowledge\/\" title=\"Game Show Judges Assess Players on Their Unknown Knowledge\">policy consulting firm based<\/a> in Washington, and author of the book &#8220;<a href=\"https:\/\/www.amazon.com\/dp\/1645720020\">The Case Against Single Payer<\/a>.&#8221; He appeared in the 1995 &#8220;Jeopardy!&#8221; Teen Tournament and is on Twitter: <a href=\"http:\/\/twitter.com\/chrisjacobsHC\">@chrisjacobsHC<\/a>.<\/p>\n<\/p><\/div>\n<p><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Taxpayers cover the costs of increased benefits and lower premiums in Medicare&#8217;s new program<\/p>\n","protected":false},"author":521,"featured_media":2347889,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_mo_disable_npp":"","fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/09\/President-Biden-Kamala.jpg","fifu_image_alt":"","footnotes":""},"categories":[546],"tags":[8384,3620,42064,5391],"class_list":["post-2347888","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-the-federalist","tag-bailout","tag-biden","tag-preelection-insurance","tag-seniors"],"fifu_image_url":"https:\/\/thefederalist.com\/wp-content\/uploads\/2024\/09\/President-Biden-Kamala.jpg","_links":{"self":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2347888","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/users\/521"}],"replies":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/comments?post=2347888"}],"version-history":[{"count":0,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/posts\/2347888\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media\/2347889"}],"wp:attachment":[{"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/media?parent=2347888"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/categories?post=2347888"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.conservativenewsdaily.net\/breaking-news\/wp-json\/wp\/v2\/tags?post=2347888"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}