Earlier this month, Kamala Harris ‘ campaign announced it raised more than$ 200 million in the first week of her candidacy, following Joe Biden’s withdrawal from the presidential campaign. A far larger, albeit unofficial, in-kind contribution came via the federal Centers for Medicare and Medicaid Services ( CMS ), which announced a new “premium stabilization demonstration” intended to minimize premium increases for seniors ‘ prescription drug coverage during the campaign’s final stretch.
Democrats have used health insurer giveaways in recent years to shield them from social problems, which is a routine.
Recent Rescue
Democrats ‘ amendments to the prescription drug benefit that were included in the so-called Inflation Reduction Act of 2022 led to the CMS statement. The regular monthly bid number for independent Part D plans almost tripled in comparison to past year due to the combination of richer benefits, including a decrease in elderly ‘ greatest out-of-pocket drug spend.
While not all of that increase would get passed through to seniors ‘ premiums, CMS conceded “more variation” in plan bids, with “resulting premium changes]that ] could create disruptive enrollment shifts”. In response, CMS made the announcement of a demonstration project where Washington will take on more of the blame for plans ‘ inefficiencies and grant carriers unrestricted grants.
CMS claims the “additional advanced balance” provided by these loans could “improve the consistency of]plan ] services”. The objective seems simple: avoid shock elders with high premiums and/or program refunds as they approach the polls, with open enrollment for 2025 beginning on October 15 — days before the November election.
Borrowing the Obama Bailout Playbook
In directing taxpayer money to politically controversial dislocation, Biden’s CMS adheres to a strategy that Barack Obama pioneered. In November 2010, simple weeks after Obamacare’s section, CMS announced a global show project increasing obligations to Medicare Advantage plans. According to the Government Accountability Office, the$ 8.4 billion demonstration “dwarfed ] all other Medicare demonstrations in its estimated budgetary impact.”
GAO recommended CMS to halt the Medicare Advantage giveaway in response to inquiries about” the company’s legal authority to conduct the demonstration,” which the management felt was appropriate to overlook. With Democrats having raided Medicare, and particularly Medicare Advantage, to finance Obamacare, leaders dreaded the idea of seniors losing protection or benefits before the 2012 vote. As for peace, if it can be smuggled into policyholders in a constitutionally questionable way, so be it.
In later 2013, the Obama administration was forced to revert to this model due to the combination of the millions of prepare withdrawal notices and a dysfunctional healthcare system. governor created another social pain. After the president’s people apology for what Politifact dubbed the” Lay of the Year”—” If you like your plan, you may keep it” — CMS announced it would allow states to keep improper plans never meeting all of Obamacare’s new regulations.
The decision also put insurers at risk because it violated the president’s constitutional obligations and because the administration pledged not to enforce federal law for political reasons. People with pre-Obamacare plans would be required to purchase new, richer coverage, so they had assumed that those who were healthy would now choose to avoid purchasing the more expensive plans when they priced their Exchange products.  ,
The administration responded by going to the bailout well yet again in 2013, just like it did in 2010. CMS stated in a statement that it would look into ways to “improve the risk corridor program” in ways that would “help ameliorate unanticipated changes in premium revenue” when it gave the option for states to permit noncompliant plans. Thankfully, Congress intervened to stop this particular bailout, but the practice of using taxpayer funds to compensate for politically unpopular choices continues.
Democrats Love Throwing Money at Problems
Also, take note of how left-wing advocates of socialized medicine shut their mouths when elected Democrats decide to open the insurance industry’s tax spigots. Have people like Sen. Bernie Sanders, I-Vt., or Rep. Alexandria Ocasio-Cortez, D-N. Y., raised even a peep to one of these bailouts? Of course not. They believe winning elections is much more important than a person’s conviction of their beliefs.
In fairness, the Trump administration discussed Medicare giveaways while in office, but this one, along with other logistical issues and objections from conservatives, prevented them from being implemented. Conservatives should be asking why Democrats always rely on bailouts to cover up the flaws in their government-run schemes when Harris attempts to promote drug pricing efforts between now and Nov. 5.
After all, if the Inflation Reduction Act did such a good job of controlling drug prices, why is CMS using authority it arguably does n’t have, and money taxpayers ca n’t afford, giving away billions to insurers?
