On Monday, the Centers for Medicare and Medicaid Services (CMS) announced 2025 premiums for Medicare Part D plans will increase again.
Next year, the base premiums for Part D plans will rise by 5.7% – but that is not the final tally for what beneficiaries will pay. The base premium is just a benchmark for plans designing their Part D components. For example, the base premium increased 6% last year, but the average premium paid by beneficiaries was 21% higher. What’s more, a number of plans could also leave the Medicare market entirely.
These outcomes are a direct consequence of the Inflation Reduction Act’s Medicare Part D redesign.
For consecutive years since the IRA took effect, seniors will be left to pay far more with fewer choices.
Much debate about the IRA’s impact has focused on the so-called drug price negotiations. While data has also shown ill-fated effects in that realm, these annual cost increases for Part D beneficiaries underscore the holistic negative impact of this law for seniors who rely on Medicare health coverage.
This is a concern for all seniors, including those from vulnerable, underserved communities and those with chronic, neurological, cancer and other conditions. According to recent research from Avalere and the National Hispanic Council on Aging, more Medicare beneficiaries who are entitled to no premiums are being forced to pay because the IRA has limited the availability of plans while increasing costs across the board.
We Work For Health remains committed to advocating for policies and initiatives that foster biopharmaceutical innovation, competition and life-enhancing discoveries to benefit patients. We call on policymakers to recognize the consequences of the IRA for seniors and patients across the U.S.
To learn more about the IRA’s impact, check out our Resources page and the following materials: