How the IRA is increasing Medicare premiums

The Biden administration will spend at least $7 billion to subsidize Part D premiums in 2025, in an effort to at least temporarily blunt the effect of the program’s redesign on plans and beneficiaries. The policy, which is under attack from Republicans, raises questions about the long-term effects of Part D redesign and raises concerns that plans will both increase premiums and make it more difficult for Medicare beneficiaries to access high-cost medicines.

Unveiled July 29, the Center for Medicare & Medicaid Services’ “Premium Stabilization Demonstration” will subsidize the premiums of members enrolled in stand-alone Part D plans by up to $15 per month and limit total Part D premium increases to $35 between 2024 and 2025, among other changes...