Congressional Democrats Should Stop Lying About Medicaid

Democrats have a lousy record when it comes to healthcare.

Everyone knows about the many failures of Obamacare. But just three years ago, a Democrat House and Senate passed, and President Biden signed, the so-called "Inflation Reduction Act (IRA)." Now, Congressional Democrats are trying to tell Republicans that common sense, bipartisan reforms to Medicaid will hurt people.

Congressional Democrats have no credibility when it comes to health care, but they do have a lot of nerve.

The Democrats have been running all over the field, claiming that the "One, Big, Beautiful Bill" will hurt Medicaid recipients and undermine health care access for Americans. This is really outrageous given the Democrats’ changes to Medicare in the IRA, which increased costs for seniors, compromising Medicare to fund their Green New Deal.

Recent analysis by former Congressional Budget Office director Doug Holtz-Eakin and the American Action Forum outline the IRA’s Medicare changes in detail and demonstrate how they have undermined the program.

Here are the top line takeaways from Holtz-Eakin’s review of the IRA:

Small Number of Potential Beneficiaries

The IRA was pitched as helping every senior by reducing premium costs. In reality, of the 65 million Medicare beneficiaries, only 5.6 million would theoretically benefit.

The IRA Has Failed to Reduce Costs for Seniors or Taxpayers

Medicare prescription drug premiums actually increased by 21% from 2023 to 2024, forcing the Biden Administration to scramble and prop up the program with a “Premium Stabilization Demonstration” that funneled $7.2 billion to big insurers.

The IRA Slapped a 95 percent prescription drug tax on seniors

If a drug manufacturer selected for the one-sided government compelled “price negotiation” (really a price control) fails to participate, the IRA imposes a 95% excise tax that would ultimately be passed along to seniors.

Not only did the Democrats game the system with this tax, but they set a terrible precedent – if you can skirt Congressional budget rules merely by including a punitive excise tax and impose price controls on drugs, you can do the same price control scheme for gas prices, rent and mortgage interest rates, etc.

Congressional Democrats are in no position to be telling anyone about healthcare policy after harming seniors with their IRA law.