Medicare officials said premiums would go up by $21.50 a month in 2022, the largest hike in five years, with half the rise attributed to t...
Medicare officials said premiums would go up by $21.50 a month in 2022, the largest hike in five years, with half the rise attributed to the new controversial Alzheimer's drug.
Medicare's Part B premiums, which covers a plethora of services for seniors in the lowest income bracket, will go up from $148.50 to $170.10, eating away at the recent $92 a month boost given to Social Security recipients.
Officials said on Friday that half the hike in premiums was due to contingency planning if Medicare has to cover Biogen's new Aduhelm drug, a $56,000-a-year intravenous medication reported to help combat Alzheimer's.
'The increase in the Part B premium for 2022 is continued evidence that rising drug costs threaten the affordability and sustainability of the Medicare program,' said Medicare chief Chiquita Brooks-LaSure in a statement.
The hike would also hit as Americans struggle with inflation - which is at 6.2 per cent, the highest it's been since 1990 - causing the price of basic goods and services to soar.
The controversial Aduhelm medication, approved by the FDA to be used against Alzheimer's, has been blamed for half of the $21.50 a month hike in Medicare premiums set for next year
Two House committees are investigating Biogen's development of the $56,000-a-year medication, including contacts between company executives and FDA regulators
The Consumer Price Index rose 6.2 percent in October 2021 from one year prior - the highest it has been since 1990
Medicare has begun a formal assessment to determine whether or not it should cover the controversial drug, as a nonprofit think tank focused on drug pricing pegged Adulhelm’s actual value at between $3,000 and $8,400 per year — not $56,000 — based on its unproven benefits, the Associated Press reported.
Two House committees are investigating the development of Aduhelm, including contacts between company executives and FDA regulators.
Medicare officials said the other half of the premium increase is due to the natural growth of the program and adjustments made by Congress last year as the coronavirus pandemic hit.
The Centers for Medicare and Medicaid Services attempted to downplay the hike as the agency had previously reported in August that Medicare premiums would only go up by $10 next year.
'This significant [Social Security] increase will more than cover the increase in the Medicare Part B monthly premium,' CMS told CNN. 'Most people with Medicare will see a significant net increase in Social Security benefits. For example, a retired worker who currently receives $1,565 per month from Social Security can expect to receive a net increase of $70.40 more per month after the Medicare Part B premium is deducted.'
But Mary Johnson, a Social Security and Medicare policy analyst for The Senior Citizens League, said many seniors will still be hurt financially because of the new hike eating away at their monthly benefits.
'Social Security recipients with higher benefits should be able to cover the... increase, but they may not wind up with as much left over as they were counting on.'
The money burden has only been exasperated by inflation, which is expected to rise through the holiday season and into 2022, when the premium hikes will take effect.
The Consumer Price Index's latest figures showed gas prices jumped a whopping 59 percent over last year, as the cost of meat increased 24 percent.
The Consumer Price Index shows a rise in prices in every category from used cars, laundry equipment, furniture to food
Vice President Kamala Harris admitted Friday that rising prices due to inflation have become a worry for American households.
Prices have gone up,' she acknowledged. 'And families and individuals are dealing with the realities of - bread cost more, the gas cost more - we have to understand what that means, that's about the cost of living going up, that's about having to stress and stretch limited resources.'
'That's about a source of stress for families that's not only economic, but on a daily level, something that is a heavy weight to carry,' she continued.
White House press secretary Jen Psaki said Friday that opponents are using rising prices as a 'political cudgel,' as the administration continues to try to retool its rhetoric after a new report showed consumers were getting hammered by price increases.
Vice President Kamala Harris admitted Friday at a press conference in Paris that rising prices due to inflation have become a 'heavy weight to carry' for American households
Inflation has 'become a political cudgel, and it shouldn't be,' said White House Press Secretary
'It's become a political cudgel, and it shouldn't be,' said Psaki, speaking at her first White House press briefing since testing positive for COVID-19 earlier this month.
'It's impacting ... millions of Americans, no matter their political party, and that's certainly of concern to the president,' she continued. She noted that 'everyone from the Federal Reserve to Wall Street agree with our assessment' that inflation will 'substantially decelerate next year.'
She also cited experts, including former Treasury Secretary Larry Summers, who have said Biden's 'Build Back Better' plan 'will not add to inflationary pressure.'
The plan, whose House version is still being scored by the Congressional Budget Office, contains tax hikes that the administration says will more than make up for the spending increases.
The bipartisan infrastructure bill Biden plans to sign Monday would add billions to the national debt, pushing more money into the market and potentially adding to inflationary effects.
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