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Ending Temporary Part D Subsidies Makes Sense
['Benedic N. Ippolito', 'Boris Vabson', 'Joseph F. Levy', 'Loren Adler', 'Yevgeniy Feyman']
American Enterprise Institute – AEI
One of those subsidies, the Part D Premium Stabilization Demonstration, reduced enrollee premiums on “standalone” Part D plans, typically purchased by those on Traditional Medicare.
Though nominally voluntary, the demonstration amounted to a national policy covering 99 percent of enrollees in standalone plans.
As the figure below illustrates, the inflation-adjusted average premiums for standalone Part D plans are far below historical norms.
In fact, enrollees only bear roughly 13% of the cost of Part D plans overall—down from nearly 26% historically.
The IRA increased program costs far more than anticipated and policymakers have leaned on taxpayers to absorb those expenditures.