A group of Congressional Republicans, led by U.S. Sen. Mike Crapo (R-ID), are urging the Congressional Budget Office (CBO) to analyze the budgetary impact of the Medicare Part D Premium Stabilization Demonstration program.
The Republicans request that CBO:
• Provide a detailed breakdown of the estimated budgetary effects for the new Premium Stabilization Demonstration for plan year 2025. This should encompass net interest costs for the new demonstration program.
• Provide a detailed breakdown of the isolated budgetary effects for each of the demonstration’s stated components. This should include the uniform $15 reduction to the base beneficiary premium, the year-over-year increase limit of $35 on a plan’s total Part D premium and the changes to risk corridors.
• Provide a comprehensive breakdown of the average projected payout to individual prescription drug plan (PDP) sponsors under this demonstration.
• Outline how Part D plan bid growth and program outlays in 2024 and 2025 compare to the CBO’s original assumptions when scoring the redesign provisions of the IRA in 2022.
The request was made in a letter to CBO Director Phillip Swagel. The letter was signed by Crapo, U.S. Sen. Chuck Grassley (R-IA) as well as U.S. Reps. Jodey Arrington (R-TX), Cathy McMorris Rodgers (R-WA), and Jason Smith (R-MO).
The Inflation Reduction Act included provisions that will lower prescription drug prices for people with Medicare Part D prescription drug coverage beginning Jan. 1, 2026.