(CNN)– The Biden Administration is offering insurers hefty new subsidies to avoid a hike in medicare drug plan premiums. Participating insurers will get an extra $15 per member per month, if they limit increases to $35 per month from the prior year. The increase in premiums was not unexpected. That is because the Inflation Reduction Act will cap an individual’s out-of-pocket prescription costs at $2 thousand for 2025. Insurance companies were expected to raise premiums to help cover some of their added expenses. Categories: News Tags: Medicare, U.S. economy