More news from an analysis of Biden's Inflation Reduction Act....
"In short, the IRA’s Medicare prescription drug reforms save the federal government $266 billion, but the savings are used to fund new climate spending, not reduce seniors’ pharmacy costs.
The analysis concludes that, “the Medicare savings are simply another means of financing the IRA’s $670 billion in clean energy tax credits and other spending on energy and the environment.”
While the law features some inexpensive new benefits, like a $2,000 cap on pharmacy out-of-pocket costs, these consume just a fraction of the savings from the prescription drug policies.
If all the savings had been used to improve Medicare, it would mean $40,000 more for each of the program’s 65 million enrollees. Instead, fewer than 10% of them will see any savings, usually less than $300. Just enough so the law’s backers can say it “reduces drug costs for seniors.”
The big winners from IRA policies like letting Medicare “negotiate” drug prices will be millions of younger, white-collar professionals who’ll get $7,500 credits for electric vehicles (EVs). For each senior who saves a few dollars at the pharmacy counter, six EV buyers will save thousands at the dealership."
