Q&A

  • Doesn't the Inflation Reduction Act (IRA) reduce what seniors pay for prescription drugs?

    No it reduces how much the federal government spends on Medicare drugs.  Unfortunately, those savings don't get passed onto seniors.

  • But if the law reduces drug prices, doesn't that help seniors?

    No, Medicare seniors don't pay the prices drug companies charge.  They pay copays set by their Medicare plan.  Copays have no relation to drug prices.

  • But won't some seniors pay less for insulin?

    Yes, the IRA reduces what Medicare plans can charge seniors for insulin.  But plans make up the extra expense by raising seniors' premiums, which jumped 21% after the law passed.

  • Why don't the savings go to seniors?

    Because Congress wanted to use the savings to reduce spending on Medicare so it could spend more on other things, like green energy.

  • If a law saves money on Medicare, doesn't the savings have to stay in Medicare or be used to help seniors?

    No.  Medicare is a federal government program so the savings can be spent on any federal program.  It's like saving money on your gas bill at home.  You don't have to use it buy more gas,  like saving money on the gas bill at home. Its means you have more to spend on other things.


  • Could Congress have required the Medicare savings to stay in Medicare?

    Yes, but in this case Congress chose not to dedicate the savings to improving Medicare benefits or reducing costs for seniors.



  • TitleDid President Biden and those who voted for the law know beforehand that the Medicare savings wouldn't go to seniors? or Question

    Yes. The Congressional Budget Office (CBO) had made that clear and they were told this before the vote.

  • Hasn't the Medicare savings already been spent on green energy, how can Congress put it back in the Medicare program?

    Since very little of the green energy funds have been spent, Congress could pass a law to cut spending on electric vehicle subsidies and return the Medicare to Medicare.

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