Chairmen Arrington, Smith, and Guthrie demand answers from CBO on “stunning” increase in Medicare Part D costs

Chairmen Arrington, Smith, and Guthrie demand answers from CBO on "stunning" increase in Medicare Part D costs

WASHINGTON, D.C.-Today, House Budget Committee Chairman Jodey Arrington (R-Texas), House Ways and Means Committee Chairman Jason Smith (R-Mo.), and House Energy and Commerce Committee Chairman Brett Guthrie (R-Ky.) wrote a letter to the Congressional Budget Office (CBO) regarding concerning technical changes in the Budget and Economic Outlook: 2026 to 2036. Specifically, the letter seeks answers on CBO's dramatic upward revision of Medicare Part D expenditures. This revision is indicative of significant failures in CBO's ability to accurately score major legislation.

Chairman Jodey Arrington released the following statement:

"CBO's latest baseline confirms what we've sounded the alarm on for years: runaway mandatory spending is the primary driver of our debt and deficits. But, included in this year's CBO baseline is a stunning revision-a massive increase in projected Medicare Part D spending.

"When Democrats passed the so-called Inflation Reduction Act (IRA), CBO projected its Medicare drug provisions would reduce spending by $129 billion. Now, CBO estimates Medicare Part D spending will be $600 billion higher than projected just last year, driven by a 35 percent increase in per-enrollee costs. Something doesn't add up. We need CBO to provide a clear accounting of this massive increase in projected spending and apparent reversal in their views on the impact of the IRA.

"The Congressional Budget Office's ability to provide lawmakers accurate and timely information is critical to Congress' ability to make decisions on behalf of the American people. This recalculation in light of that vital mission is another reason why we must have independent scrutiny over the CBO's practices, methods, and operations."

Read the letter here.

BACKGROUND

• Medicare is one of the largest drivers of our federal debt. CBO increased its projections for Medicare spending by $1 trillion in this year's baseline compared to 2025. Factors include increases in fee-for-service spending and increased Part D costs.
• CBO originally estimated that the Medicare drug price negotiation and Part D redesign provisions in Democrat's so-called Inflation Reduction Act's would reduce the deficit by $129 billion.
• Instead, Part D spending has ballooned. In this baseline, CBO increased its Medicare Part D spending projections by $600 billion since just last year, with Democrat's policies as the culprit.
• The letter seeks clarity on CBO's revision of its scoring of the Inflation Reduction Act's drug pricing provisions, a breakdown of future Part D expenditures projections, and demands answers on how CBO could so drastically miscount the impact of these major Democrat policies on taxpayers and Medicare beneficiaries.