Potential Impact of Project 2025 on Medicare Enrollees
Recent reforms in prescription drug pricing, introduced through the Inflation Reduction Act of 2022, have begun to ease the financial burden on seniors and other Medicare beneficiaries. However, these changes now face potential reversal.
The Heritage Foundation, through its Project 2025 initiative, advocates for policies favoring pharmaceutical companies. Their “Mandate for Leadership: A Conservative Promise” outlines a plan to repeal the Inflation Reduction Act, aligning with the Republican Study Committee’s fiscal year 2025 budget proposal, “Fiscal Sanity to Save America,” which also calls for a complete repeal of the law. Should these plans come to fruition, the anticipated cost savings for millions of Medicare enrollees could be at risk.
Currently, over 1.5 million Medicare Part D beneficiaries could face increased costs if the $2,000 out-of-pocket cap is removed. Additionally, 18.5 million enrollees may lose vital savings provided by the Inflation Reduction Act’s comprehensive Medicare Part D redesign. Some seniors could see their drug savings decrease by nearly $400 in 2025 alone, with a nationwide potential loss of up to $7.4 billion in savings.
The Project 2025 agenda includes repealing the Inflation Reduction Act to eliminate Medicare’s drug price negotiation capability. This provision is crucial for reducing what Medicare pays for specific medications and curbing the pharmaceutical industry’s ability to set exorbitant prices. However, the proposed changes could result in higher out-of-pocket costs for millions of seniors, potentially making essential medications less affordable and accessible.
1.54M
Estimated number of Medicare Part D enrollees who could pay more without $2,000 out-of-pocket cap
18.57M
Estimated number of Medicare Part D enrollees who could pay more without IRA out-of-pocket savings
$399
Average potential increase in out-of-pocket costs among Medicare Part D enrollees with cost increases
$7.4B
Total missed savings for Part D enrollees in the United States
