A KHN and PolitiFact health check: Under the Medicare drug negotiations provisions in the reconciliation bill, the federal government would see its outlays reduced by about $300 billion. That reduction wouldn’t result from cuts in benefits. Instead, Medicare would be empowered to leverage its market power to pay lower prices for certain drugs.
Senate Democrats’ reconciliation bill “will strip $300 billion from Medicare.”
- Ad from the American Prosperity Alliance, posted July 19
As Senate Democrats raced to pass what could be their final piece of major legislation before the midterm elections, critics went to the airwaves to blast the proposal as hurting older Americans who rely on Medicare.
Here’s the narration of one ad, sponsored by a group called the American Prosperity Alliance:
“Higher gas prices, higher grocery bills, everything today is costing too much. Now, Congress is considering a bill that will strip $300 billion from Medicare, money older Americans rely on for their medicine, their treatments, their cures. We are all paying more today, but stripping $300 billion from Medicare? It’s simply too much. So call Congress and tell them to oppose [President Joe] Biden’s reckless spending package.”
The ad misleadingly paints what is more accurately characterized as nearly $300 billion in savings for consumers and taxpayers.
The American Prosperity Alliance maintains almost no online profile. Its website provides only a link to the ad, without any identifying information or pages beyond the homepage. When we asked a better-known group with a similar name, Americans for Prosperity, whether the American Prosperity Alliance was an affiliate, a spokesperson, Bill Riggs, said, “This is NOT our ad and we are not affiliated with this group.”