The Democrat Healthcare Agenda Is Shakier Than Biden’s Candidacy
As Joe Biden navigates a now uncertain path to the Democratic nomination, the president continues to lean on his administration’s delivery of lower healthcare costs for seniors as a policy win. But to the dismay of older Americans, the rhetoric is full of hot air. The Democrats’ policies have undermined Medicare, not improved it.
At the center of the Medicare fiasco is the comically misnamed Inflation Reduction Act, which was signed into law by Biden back in 2022. The federal legislation not only fanned the flames of economy-wide inflation by spending an additional $1.2 trillion but provisions specifically flipped Medicare upside down for seniors.
The law empowers the Department of Health and Human Services (HHS) to apply price controls on certain prescription drugs accessed through Medicare. Beyond the chilling effect the policy will have on the development of new lifesaving treatments and therapies—which is already playing out—seniors will be stuck with higher prices and fewer choices.
Average Medicare Part D premiums are 21 percent higher this year compared to 2023, with some states experiencing monthly payments that are spiking by more than half. Additionally, a recent modeling analysis from Milliman finds 3.5 million Medicare Part D recipients will be paying higher out-of-pocket costs for medicine once the Inflation Reduction Act takes full effect in 2026.
Why are costs going up? Because manipulating the free market rarely happens without unintended consequences. While no one—Republican or Democrat—intended to increase prices for seniors living on a fixed income, the legislation was jammed through Congress without fully considering the domino effect.
And what will seniors receive in return for the higher prices? Fewer options.
Medicare coverage will inevitably prioritize the medicine that falls under the Democrats’ price controls. Why? Because although patients could be paying more, the government will enjoy a steep discount. It’s like Disney marketing Magic Kingdom over Universal Studios in Orlando. Or Apple discouraging the use of off-brand headphones.
When the dynamic unfolds within Medicare Part D, it translates to some drugs having a leg up on others regardless of whether it’s the best treatment for a patient’s unique circumstance.
Biden should know better than to double down on healthcare misadventures. During his previous tenure as vice president, he had a front row seat to the fallout of Obamacare.
Combining strict health plan regulations with increasingly large government subsidies has encouraged healthcare costs to rise rather than fall. In fact, per capita healthcare expenditures in the U.S. have increased by more than 40 percent since Obamacare took effect. That’s significantly quicker than a similar period leading up to the law’s implementation.
And to keep the Ponzi scheme operational, bigger and bigger government payouts are needed to mask inflating prices. Although hidden by smoke and mirrors for some patients, middle-class families that don’t qualify for government aid are financially squeezed.
Rather than mending America’s healthcare system with paper clips and duct tape, policymakers should use patient choice, price transparency, and competition as policy North Stars to pursue long term reform. Continuing with the status quo—characterized by tacking on more government subsidies and red tape—will leave patients flatlining.
Joe Biden’s candidacy is on shaky ground. But the Democrats’ track record on healthcare is even more unstable.
Elaine Parker is the president of the Job Creators Network Foundation, which manages the HealthcareForYou.com
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