A new analysis of government data by the American Action Forum found that including Medicare Part D prescription drug rebates in the final debt ceiling package would increase monthly premiums by up to 40 percent for more than 17 million seniors.

The analysis examined the rebate proposal offered by the Obama Administration and Congressional Democrats, which would require drug manufacturers to pay a Medicaid-style premium for the opportunity to sell prescription drugs to low-income seniors who qualify for both Medicare and Medicaid.

According to the analysis, the plan would have a far reaching impact, forcing other seniors to pay higher premiums and hurting the successful and popular Medicare prescription drug program.