In 2022, Vice President Kamala Harris gave a tie-breaking vote on the Inflation Control Act, which could raise Medicare costs for some seniors next year.
The Senate vote was split 51-50 along party lines, with Harris casting the final vote on the bill that would make major changes to Medicare prices starting in 2025.
“From day one of our administration, President Joe Biden and I have made it a priority to strengthen the middle class by lowering costs, creating jobs, and expanding opportunity,” Harris said in a statement last month. “That’s why we fought to pass the Inflation Control Act, a historic piece of legislation that I’m proud to have the tie-breaking vote in the Senate for.”
The law aimed to reduce health care costs through a set of new rules for 2025.
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These included a $35 cap on insulin and a $2,000 out-of-pocket cap on drug costs for Medicare enrollees. Also, for the first time, Medicare can now negotiate lower prescription prices for expensive drugs.
The Biden administration says the changes will save 19 million seniors an average of $400 a year, but critics say they could raise premiums for the average senior. are.
Pharmaceutical companies will also offer discounts throughout the year, and seniors will be able to spread out their annual costs with new monthly payment options.
“The Inflation Control Act was intended to reduce the cost of medicines,” said Chris Fung, CEO of Smile Insurance. Newsweek. “But only some seniors will see the cost savings.”
An insurer's plan will likely have to cover additional drug costs and pull them from other aspects of the plan, resulting in higher premiums, copays and even deductibles, Fung said. said. Some insurance companies may add additional steps to approve your drug.
newsweek We also reached out to Cigna, Aetna and Humana insurance companies via email for comment.
But Fong said Harris' tie-breaking vote could be seen as a positive for some seniors who associate the decision with an initial drug price reduction, despite the potential for higher premiums. added.
“I think her tie-breaking vote is likely to be a positive for Harris for seniors whose drug costs disproportionately exceed $2,000 a year,” Fung said. “However, older adults who had lower drug costs may have a more negative view of presidential candidate Harris.”
Michael Ryan, a financial expert and founder of michaelryanmoney.com, said Democrats are likely to tout lower drug costs “as if it were the best thing since sliced bread.”
“For a lot of seniors, that may be the case,” Ryan said. newsweek. “But what about Republicans? They're going to totally oppose raising premiums.”
The Republican National Committee previously commented on the issue, saying, “Kamala Harris was the tie-breaking vote on both the failed $1.9 trillion stimulus bill and the Inflation Explosion Act, both of which will be released in the future when Harris and Biden become president.'' Since then, prices have increased by 20.3%.” Commission spokeswoman Anna Kelly told PolitiFact. “Everyday Americans don't care which of Harris' out-of-control spending proposals result in higher taxes and less money in their pockets.”
In the long term, Ryan said, this shift could trigger major changes in the healthcare industry, but there could also be unintended consequences. “Knowledge is power. Older adults need to stay informed and ready to adapt. Some may find their costs significantly lower, but they may have to shop around for a better Medicare plan. There may be some people.”
Medicare open enrollment begins October 15th and runs through December 7th.
