Biden administration accused of diverting Medicare funds to subsidize electric vehicle tax credits, sparking outrage and calls for investigation.
At a Glance
- Biden administration allegedly misallocating Medicare funds for EV tax credits
- Critics claim the move is aimed at masking Medicare premium hikes before election
- Republicans call for investigation into possible Hatch Act violations
- Seniors face rising healthcare costs amid fund reallocation
- Concerns raised about ethical use of taxpayer money and potential election tampering
Biden Administration Under Fire for Medicare Fund Reallocation
The Biden administration is facing severe criticism for allegedly misallocating Medicare funds to support electric vehicle tax credits. This controversial move has reportedly led to increased costs for seniors’ prescriptions, drawing sharp rebuke from opponents as the election season approaches. The administration’s actions have raised concerns about the ethical use of taxpayer money and potential election tampering to benefit the Biden-Harris campaign.
According to reports, the Biden-Harris administration is using taxpayer funds to mask upcoming increases in Medicare premiums. The Centers for Medicare and Medicaid Services (CMS) introduced a three-year “demonstration project” to subsidize premiums and keep them low. However, critics argue that this move shifts costs to taxpayers, increasing subsidies from $30 per recipient per month in 2024 to $142.70 in 2025.
🚨This would be huge
The Biden/Harris admin took $230B from Medicare to fund EV tax credits
When seniors’ premiums started spiking, Biden/Harris took MORE money to pay off insurers to delay price hikes until *after the election*
Now Republicans are calling for an investigation pic.twitter.com/KsJN2rzi68
— Matt Whitlock (@mattdizwhitlock) September 28, 2024
Impact on Seniors and Healthcare Costs
The reallocation of Medicare funds has sparked concerns about its impact on seniors and overall healthcare costs. Research by Fidelity indicates that a 65-year-old retiring today will spend $165,000 on health care in retirement, a 5% increase from last year. This comes at a time when seniors are already struggling with increased costs due to inflation under the Biden administration.
“Seniors are struggling to handle Joe Biden’s inflationary surge in costs for the staples of life, yet the administration seemingly couldn’t care less. Instead of addressing the cost of living crisis, it has been moving savings from Medicare to fund radical ‘Green New Deal’ priorities, especially subsidizing electric vehicles. Not surprisingly, when citizens are apprised of this massive transfer, they overwhelmingly disapprove.”
A 2022 survey by the Senior Citizens League found that 45% of elderly Americans used food banks or applied for SNAP, a significant increase since Biden took office. Nearly one-third of senior-headed households are cost-burdened, spending more than 30% of their income on housing. With drug plan premiums expected to increase by 21% in 2024, many seniors face difficult financial decisions.
Criticism and Calls for Investigation
Republicans, including Senator Rand Paul, are vigorously advocating for an investigation, citing possible breaches of the Hatch Act, which outlaws the use of official resources for electoral advantages. Former President Trump adviser Joe Grogan criticized the plan, suggesting it won’t survive legal scrutiny and calling it a misuse of taxpayer dollars.
“They’ve destroyed Part D premiums,” Grogan told Fox News Digital in an interview. “I’m not sure it’ll survive legal scrutiny if someone were to sue. Objectively, it shouldn’t be done. It’s just interjecting $5-$10 billion of taxpayer dollars, while the taxpayers are paying the price 85 days before an election. It’s sickening.”
Energy and Commerce Committee Chair Cathy McMorris Rodgers and House Ways and Means Committee Chairman Jason Smith argue that Biden’s plan will harm Medicare and seniors’ access to medicines. They claim that the Inflation Reduction Act (IRA) is already causing companies like Alnylam and Eli Lilly to halt development of new treatments due to financial concerns.
Long-term Consequences and Concerns
Critics warn of long-term consequences for Medicare and the pharmaceutical industry. The Inflation Reduction Act aimed to cap out-of-pocket drug costs for Medicare beneficiaries, but insurers are expected to significantly increase monthly premiums for Part D plans, with average bids tripling by 2025. This situation has led to concerns about the sustainability of the Medicare program and its ability to provide affordable healthcare for seniors in the future.
“This is only going to get worse in 2025, 2026,” Grogan continued. “The program is in a death spiral. They announced a three-year demo. It’s already broken. The demo is going to fail. Premiums are still going to go up.”
As the debate continues, the Biden administration’s handling of Medicare funds and its prioritization of electric vehicle subsidies over senior healthcare remains a contentious issue. With the election approaching, this controversy is likely to play a significant role in political discussions and voter considerations.
