In a bid to address the growing concerns over rising healthcare costs, president Joe Biden unveiled a new set of initiatives aimed at reducing expenses for families. The initiatives, which include cracking down on scam insurance plans, preventing surprise medical bills, and tackling medical debt linked to credit cards, were announced on July 7.
The move builds upon previous efforts by the Biden administration to tackle the issue of skyrocketing healthcare costs. The Department of Health and Human Services has released new estimates suggesting that around 18.7mn older adults and other Medicare beneficiaries could save approximately $400 annually on prescription drug costs by 2025. This cost reduction is attributed to the president's implementation of a cap on out-of-pocket spending as part of last year's Inflation Reduction Act.
With the 2024 reelection campaign on the horizon and concerns about inflation weighing heavily on voters, president Biden has been emphasizing his policies aimed at helping families manage their expenses. Additionally, the administration has been rolling out a series of government incentives designed to encourage private sector developments in areas such as electric vehicles, clean energy, and advanced computer chips.
However, Republican lawmakers have criticized the president's policies, arguing that they have contributed to higher prices that adversely impact families' well-being.
To address concerns over "junk" insurance plans, president Biden's initiatives aim to limit the availability of these short-term policies that often lack basic coverage. These plans are particularly problematic when individuals transition between employers and require temporary health care coverage. Neera Tanden, director of the White House Domestic Policy Council, highlighted a case in Montana where a man received a $43,000 health care bill because his insurer deemed his cancer to be a pre-existing condition. Tanden labeled such plans as "junk insurance" and announced the administration's intention to propose a rule to crack down on them.
In addition to tackling scam insurance plans, the president also announced new guidance on medical billing, stemming from the "No Surprises Act" passed in 2020. The guidance aims to restrict insurers that contract with hospitals from claiming that the care provided was "out of network" and subsequently charging customers higher fees. Health plans will also be required to disclose any "facility fees" that may appear as unexpected costs on medical bills.
The Consumer Financial Protection Bureau and Treasury Department are seeking information on third-party credit cards and loans specifically used to pay for health care. The goal is to address the higher costs and interest charges associated with these financial products, which can discourage individuals from seeking necessary medical treatment.
President Biden is also expected to highlight previous efforts to tackle healthcare costs, such as allowing Medicare to negotiate lower prices for prescription drugs and implementing a $35 monthly price cap on insulin for individuals in Medicare Part B.
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