The Council for Affordable Health Coverage (CAHC) held a briefing on Capitol Hill to discuss the impact of the Inflation Reduction Act on Medicare. CAHC President Joel White was joined by Craig Ritter, CEO of Ritter Insurance Marketing, a national Field Marketing Organization (FMO) specializing in life and health products in the Medicare market, and Ryan Ellis, President of the Center for a Free Economy, a 501(c)(4) non-profit based in Northern Virginia.
Joel began by providing a brief history of Medicare and the program’s evolution under the IRA, highlighting significant changes to Part D, including the imposition of government price controls on prescription drugs and adjustments to benefits, which have caused disruptions in the market. He also pointed out that the law’s proponents claimed to cap premium growth at 6 percent, yet this year, average premiums for Part D plans have risen by 21 percent. By 2025, these premiums are projected to double. Seniors are facing higher costs and a reduced range of options as a result of the availability of stand-alone Part D plans and low-income subsidy plans reaching an all-time low.
Craig Ritter then explained how brokers assist seniors in evaluating their Medicare plan options to find the best fit based on their specific needs. He highlighted a significant increase of over 200 percent increase in Part D beneficiaries switching stand-alone plans from 2023 to 2024. Mr. Ritter cautioned that Medicare Part D beneficiaries should brace themselves for premium hikes in the 2025 plan year, emphasizing the low likelihood of the plan they end up in meeting their needs. Additionally, he projected that Medicare Advantage Plan beneficiaries could experience degraded benefits across the board due to escalating costs and the potential termination of plans.
Ryan Ellis presented a recently released letter from the Center for a Free Economy, joined by other conservative groups, detailing the IRA’s effects on Medicare benefits and healthcare costs. The letter criticized the law for allowing government funds from Medicare to be allocated to non-healthcare-related projects and urged Speaker Mike Johnson and Senator Mitch McConnell to collaborate in addressing the shortcomings of the IRA and safeguarding Medicare.
CAHC has made addressing these changes to Part D a priority and is committed to working with the necessary stakeholders to ensure Congress reaffirms its commitment to America’s seniors by doing all it can to mitigate the market disruption caused by the Inflation Reduction Act.
Click here to access the presentation slides.
Click here for a brief overview of Medicare and here for the impact of the IRA on Part D.
Click here to review the results of a CAHC survey of 55 battleground congressional districts on healthcare issues.