Bidenomics Fails Again! Inflation Reduction Act May Actually Increase Insurance Premiums For Retired Americans Increase By 42-57% In 2024 (Household Insurance Rises By Most Since Pre-Covid) – Confounded Interest – Anthony B. Sanders

Ah, the infamous “Inflation Reduction Act!” Remember, it was an act sold as inflation reduction, although it was all about green energy spending. And now making Medicare insurance premiums go up by 42-57% in 2024!

In the Inflation Reduction Act, lowering the maximum out-of-pocket spending cap for Medicare Part D prescription drugs from $7,050 in 2023 to $2,000 in 2025 will reduce co-pays for some, especially those with chronic conditions.

However, financial liability will shift to insurers expected to cover 60-80 percent of costs once patients hit the new $2,000 cap.

So, while the Inflation Reduction Act aims to lower overall healthcare costs for retirees, it may actually increase 2024-2025 Part D premiums for 75 percent of enrollees seeing no co-pay relief.

The HealthView report, published in November 2023, contrasts sharply with a July projection by the Centers for Medicare & Medicaid Services, the federal agency that administers the Medicare program, 

The CMS said there would be a 1.8 percent decline in Part D premiums for 2024, citing the Inflation Reduction Act’s reforms as the basis for stable or reduced costs.

However, HealthView tells a different story. It forecasts major hikes for retirees in states with large senior populations.

Projected 2024 premiums are $1,404 in California, $1,246 in Florida, $1,154 in Texas, $1,469 in New York, and $1,189 in Pennsylvania. This represents average increases ranging from $269 in Texas to $510 in New York.

Bottom line? Retired Americans enrolled in Medicare’s Part D prescription coverage could see their premiums increase by 42-57 percent in 2024.

But tenants and household insurance growth is now higher that pre-Covid.