Critics accuse the Biden-Harris administration of using taxpayer money to conceal Medicare premium increases before the election.

The Biden-Harris administration has used taxpayer money to conceal impending increases in Medicare premiums, according to critics.

The Inflation Reduction Act (IRA) aimed to limit out-of-pocket drug costs for Medicare beneficiaries, but insurers plan to increase monthly premiums for Part D plans by an average of three times by 2025.

The CMS introduced a three-year "demonstration project" to subsidize premiums, aiming to keep them low, but critics argue that taxpayers will fund a significant increase in subsidies, from $30 per recipient per month in 2024 to $142.70 in 2025, raising concerns about the long-term impact on government spending and debt.

Joe Grogan, a former advisor to President Trump, has criticized the maneuver, stating that it only shifts costs rather than providing genuine relief.

"According to Grogan, the destruction of part D premiums could face legal challenges if someone were to sue. Objectively, it is not advisable to do so, as it involves injecting $5-10 billion of taxpayer dollars into the situation, at a time when the taxpayers are already paying the price 85 days before an election. Grogan finds the situation to be sickening."

"In 2025 and 2026, the situation will deteriorate further as the program is in a death spiral. The three-year demo has already failed, and the program is already broken. Premiums will continue to rise."

In a recent analysis, Paragon Health Institute criticized the CMS demo plan as a "sham, expensive demonstration."

"The IRA redesign is expected to increase premiums for Part D plans, prompting CMS to launch a new, nationwide demonstration program that is neither voluntary nor a demonstration. Unlike the massive subsidization scheme, demonstrations are intended to test alternative features of program design. As a result of the IRA changes, insurers that don't participate are likely to be uncompetitive from a price perspective or face significant losses, leaving them with little choice."

According to research from Fidelity, a 65-year-old retiring today can expect to spend $165,000 on health care in retirement, a 5% increase from the previous year and more than twice the estimate from 2002.

Many Americans underestimate the cost of health care in retirement, with the average American expecting to spend only $75,000, which is significantly less than Fidelity's projection.

Medicare covers most hospital care and doctor's visits through Part A and Part B, and prescription drugs through Part D. However, other expenses such as premiums, over-the-counter medications, dental and vision care, and other costs not covered by Medicare are the responsibility of retirees to manage on their own, according to a report.

According to the Centers for Medicare and Medicaid Services, approximately 67.3 million Americans were enrolled in Medicare as of April 2024. Of these, roughly half were enrolled in a Medicare Advantage plan, while about 80% were covered by Medicare Part D.

"Grogan stated that they simply want to get through the election, hoping to confront the issue after it's over. However, they believe it will need to be addressed in the next 12-18 months. They did not anticipate it would be this severe and it will only worsen."

The cost of prescription drugs in America has increased by nearly 40% over the past decade, significantly more than the rate of inflation.

Planet Chronicle Digital has reached out to CMS for comment.

Fox Business' Megan Henney contributed to this report.