Biden’s misleading Medicare premium drop boast
President
The seesawing premiums have seniors paying
In a
Biden,
This is a prime example of what we'd call a "true, but" claim. It's technically true: Part B premiums will go down for 2023, and it's the first time that has happened since 2012. But — there's more to the story. And the context around this claim makes it less of a noteworthy event.
As STAT pointed out in its morning newsletter on
Here's what has happened: Last year, the
In announcing the premium hike, CMS explained that it was due, in part, to COVID-19 expenses and a pandemic-related limit to premium increases the prior year. It also noted uncertainty around potential Medicare spending on Alzheimer's drugs, specifically Aduhelm, which is given intravenously in a clinic or hospital. These types of physician-administered drugs are covered under Part B, not Part D, which covers pharmacy prescriptions. CMS said an analysis was still ongoing at the time to decide whether Medicare would cover Aduhelm. The drug had been approved by the
"By law, the Medicare Part B monthly premium must equal 25 percent of the estimated total Part B costs for enrollees age 65 and over," CMS said, so it had to include "additional contingency reserves" to potentially cover Aduhelm.
At the time, the drug was supposed to cost
Several months later, Biogen, the drug's manufacturer, dropped the price by about half. Then, in January of this year, CMS proposed that Medicare cover Aduhelm only for seniors in clinical trials, citing the
So when it came time to set the 2023 Part B premiums, a lot had changed in terms of expected costs for the Alzheimer's drug.
CMS explained this in its press release announcing the monthly premium of
We're certain the drop in Part B premiums "for the first time in more than a decade" is welcome news to seniors. But it follows a sizable hike the year before.
FactCheck.org does not accept advertising. We rely on grants and individual donations from people like you. Please consider a donation. Credit card donations may be made through our "Donate" page. If you prefer to give by check, send to: FactCheck.org, Annenberg Public Policy Center,
Scranton garage owner among 19 charged in car title fraud scheme
Medicare Cuts Could Limit Access to Critical Lab Tests
Advisor News
Annuity News
Health/Employee Benefits News
Life Insurance News