Biden tries to avoid spike in Medicare

 

(CNN)– The Biden Administration is offering insurers hefty new subsidies to avoid a hike in medicare drug plan premiums.

Participating insurers will get an extra $15 per member per month, if they limit increases to $35 per month from the prior year.

The increase in premiums was not unexpected.

That is because the Inflation Reduction Act will cap an individual’s out-of-pocket prescription costs at $2 thousand for 2025.

Insurance companies were expected to raise premiums to help cover some of their added expenses.

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