The Congressional Budget Office (CBO) predicts there will be $700 billion in additional Medicare prescription drug spending in the next 10 years, something Republicans are blaming on Democratic policies.
In May, the House Ways and Means Committee requested the CBO explain why this expected increase in Medicare Part D, a prescription drug benefit for seniors and people with disabilities, is so drastic. In a written response this week, the agency attributed the higher costs to greater-than-expected prescription drug use following the Part D redesign, along with smaller-than-expected savings from drug price negotiations.
Budget Chairman and Representative Jodey Arrington (R-TX) said this breakdown underscores the various issues with the Inflation Reduction Act (IRA), Democrats' sweeping climate and health care law from 2022.
“We have once again confirmed that Democrats, with CBO’s analysis in hand, sold the American people a false bill of goods in the Inflation Reduction Act,” Rep. Arrington said.
Rep. Arrington said the CBO shared an initial estimation that the IRA policies would save taxpayers $129 billion, proving how deceptive these “misguided policies” actually are.
“The drug pricing scheme in the [IRA] fails to deliver the savings Democrats promised,” he said.
This new analysis comes a few days before President Donald Trump announced a 100% tariff on imported patented pharmaceuticals, marking the administration's latest effort to reshape drug pricing and boost domestic manufacturing.
Alongside rising drug costs, Ways and Means Chairman and Rep. Jason Smith (R-MO) said the CBO is offering 50% fewer drug plans for seniors and taxpayers to choose from.
“Plain and simple, Democrats have made it harder for seniors to afford prescription drugs,” Rep. Smith said. “Because of these misguided policies, Americans are paying more for health care than ever before while facing fewer choices and less access to care in return.”
Rep. Arrington said the revised Part D estimate adds to what Republicans argue is a broader pattern of underestimated IRA-related costs. Combined with a separate $600 billion miscalculation of the cost of the Democrats’ Green New Deal tax credits, he said the IRA has cost Americans $1.3 trillion more in new deficit spending.
“Today, taxpayers are left holding the bag due to Democrats’ failed experiment in price fixing and their Green New Deal climate agenda,” he said.
