The Medicare prescription drug program – Part D – is loved by beneficiaries for consistently delivering low premiums, robust choices, and broad access to drugs. The Inflation Reduction Act (IRA) radically rewrote Part D, imposing price controls on drugs while redesigning drug coverage in a way that is increasing premiums, reducing competition and choice, and raising out-of-pocket costs.
Seniors Facing High Premiums
Seniors are facing the highest premiums in Medicare Part D’s history with the fewest number of available plans.
The IRA was supposed to cap premiums at a 6% increase per year, but premiums increased an average of 21% in 2024. In 2025, premiums are estimated to increase anywhere from 50-100% or higher.
IRA Impact on
Part D
A new report by the Council for Affordable Health Coverage tracks how the IRA’s redesign of Part D is impacting the benefit.
Resources
Overview of Medicare
The history behind the creation of Medicare and how Part D works
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Impacts of the IRA on Part D
Overview of how the Inflation Reduction Act impacted Part D
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Key findings: The IRA – Raising Costs on Seniors
A two-page summary of the issue brief
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Summary of CMS Part D Premium Stabilization Demo
An overview of the July 29 CMS Part D Demo
Click Here to DownloadRecent IRA News
- Biden-Harris Admin’s Medicare Shock for Seniors – The Daily Caller
- Potential Tweaks To IRA Not Enough To Quell Innovation Harms, Industry Says – Inside Health Policy
- The Inflation Reduction Act’s Hidden Healthcare Costs to Patients – International Business Times
- Democrats Are Gaming Medicare Costs This Election Year – Townhall
- CMS Punts Part D Premium Announcement, Hopes New Demo Will Bring Down Rates – Inside Health Policy
- Inflation Reduction Act Hurts Middle America – DC Journal
- Repeal The Inflation Reduction Act – RealClear Health
- Government Price-Fixing in Pharma Is Making Things Worse – Townhall
- IRA Will Cause Part D Premium Increases, Less Access To Care – Inside Health Policy
- Medicare Change Sparks Price Increase Warning From Health Care Expert – Newsweek
- Is the Inflation Reduction Act Failing Oklahoma’s Senior Citizens?- The Oklahoman
- Inflation Reduction Act’s Dirty Little Secret: Largest Premium Increase Ever for Medicare Drug Benefit – Townhall
- Biden’s War on Medicare – RealClear Policy
Other IRA-Related Issues
A Deep Dive into the Inflation Reduction Act & What It Means for the Future of Healthcare
A look at how the IRA will affect the future of healthcare
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The Inflation Reduction Act & the Small Molecule Penalty
How the IRA changes investment incentives around which types of drugs research will be funded
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How the Inflation Reduction Act is Impacting Rare Disease Patients
The IRA will result in the development of fewer treatments for people with rare conditions
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Shortage of Cancer Drugs is Killing American Children
The IRA creates incentives to keep treatments from patients.
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Rare Disease Patients Need Action from Congress
The IRA disincentivizes manufacturers from studying additional orphan indications for their products
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The Inflation Reduction Act is Destroying Oncology
Price-setting of Part B drugs will place barriers to access, impose restrictions on cancer treatments, and limit providers’ ability to operate.
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