Congressman Brett Guthrie | Official U.S. House headshot
Congressman Brett Guthrie | Official U.S. House headshot
WASHINGTON, D.C. - Congressman Brett Guthrie (KY-02), Chair of the Health Subcommittee on the House Energy & Commerce Committee, along with Rep. Vern Buchanan (FL-16) and several Republican colleagues from the committee, addressed a letter to Centers for Medicare & Medicaid Services (CMS) Administrator Chiquita Brooks-LaSure. The letter expressed concerns regarding the recently announced Medicare Part D Premium Stabilization Demonstration program, which aims to mitigate significant premium increases caused by perceived failures of the Inflation Reduction Act.
The program is projected to cost taxpayers over $5 billion annually for the next three years. Lawmakers fear it may result in higher future costs for seniors on fixed incomes and reduced access to essential medications.
In their letter, Guthrie and Buchanan stated: “We have significant concerns and questions regarding the recent Centers for Medicare and Medicaid Services’ announcement on July 29, 2024, relating to the Medicare Part D premium stabilization demonstration. Well before 2025 plan year bids were submitted, there were flashing warning signs from prescription drug plans (PDPs) that seniors would face significant increases to their premiums in 2025 as a direct consequence of Biden-Harris policies."
They further noted changes introduced by the Inflation Reduction Act: "The Inflation Reduction Act (P.L. 117-169) redesigned the Medicare Part D prescription drug benefit. The most notable changes to the benefit include increasing the liability on Part D plans in the catastrophic phase of the benefit, capping base premium growth for Part D plans by no more than 6% from the previous year through 2028, and capping beneficiary annual out-of-pocket spending at $2,000."
Addressing budgetary concerns, they wrote: “Your demonstration... puts increased burden on hard-working taxpayers that will only cause more long-term uncertainty in this critical program and drive higher spending for years to come... We therefore have substantial long-term budgetary concerns that could impact the viability of the Medicare program.”
On July 29, 2024, CMS announced this demonstration unexpectedly as it was not included in April's annual rate notice for Plan Year 2025. Plans were given five days to decide whether or not to participate or face prohibition from future participation. The demo imposes caps on premium growth at $35 annually for participating plans and reduces premiums by $15 across all participating plans.
In 2024, standalone Part D plan premiums averaged $48—a 21% increase compared to 2023—with a decrease in available plans by over 10%. CMS bid data for 2025 shows a national average bid increase of 179% from the previous year for Part D plan sponsors.
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