By Washington, D.C. – President Joe Biden is set to unveil a series of initiatives aimed at reducing health care costs. The plan includes measures to crack down on scam insurance plans, provide guidance to prevent surprise medical bills, and address medical debt linked to credit cards.
Building on Previous Efforts to Curb Costs
These new initiatives by President Biden build upon previous actions taken to limit health care expenses. In 2025, the Department of Health and Human Services estimates that around 18.7 million older adults and Medicare beneficiaries will save approximately $400 per year on prescription drug costs. This significant savings is a result of the president’s introduction of a cap on out-of-pocket spending under the Inflation Reduction Act passed last year.
Focus on Managing Families’ Expenses
Looking ahead to his 2024 reelection campaign, President Biden is addressing concerns regarding inflation and its impact on voters. With a focus on helping families manage their expenses, the Democratic president has not only prioritized initiatives to reduce health care costs but has also introduced a range of government incentives to promote private sector advancements in electric vehicles, clean energy, and advanced computer chips.
Criticisms from Republican Lawmakers
Amidst these efforts, Republican lawmakers have criticized President Biden’s policies, claiming they have led to increased prices that negatively affect families’ well-being. However, the administration remains steadfast in its commitment to addressing health care affordability.
Crackdown on “Junk” Insurance Plans
One of the key components of the administration’s plan is to tackle what it considers “junk” insurance plans. These short-term policies often deny individuals basic coverage during transitional periods between jobs, leaving them in need of temporary health care coverage. The government aims to limit such plans and ensure individuals have access to comprehensive and reliable insurance options.
President Biden’s upcoming announcement signals his ongoing commitment to addressing the pressing issue of health care costs while providing crucial support for American families’ financial well-being.
Improving Health Care for Americans: Biden’s Proposed Reforms
Neera Tanden, the director of the White House Domestic Policy Council, sheds light on the plight of a Montana man who faced a staggering $43,000 health care bill due to his insurer categorizing his cancer as a pre-existing condition. Expressing her concerns, Tanden emphasizes that this kind of coverage lacks credibility, referring to it as “junk insurance.” To mitigate such issues, the Biden administration intends to introduce a rule aimed at clamping down on these inadequate plans.
In addition to addressing pre-existing conditions, President Biden plans to unveil new guidelines regarding medical billing. These guidelines will be based on the “No Surprises Act” from 2020. The objective of these regulations is to curtail instances where insurers, who hold contracts with hospitals, wrongfully classify provided care as “out-of-network.” By limiting such practices, patients will be spared from paying exorbitant costs. Simultaneously, health plans will be required to disclose any unexpected expenses, such as “facility fees,” which are increasingly being imposed on patients.
Tanden condemns the practice of gaming the system, highlighting that it is strictly prohibited. As part of broader efforts to improve the health care system, the Consumer Financial Protection Bureau and Treasury Department are seeking information on third-party credit cards and loans that individuals use to finance their medical treatments. The aim is to address the challenges posed by high costs and interest charges, which often dissuade people from seeking the care they desperately need.
President Biden’s proposed reforms also include initiatives to reduce health care costs. For instance, plans are underway to allow Medicare to negotiate lower prices for prescription drugs. Additionally, a monthly price cap of $35 on insulin for Medicare Part B beneficiaries has been introduced.
The Biden administration is committed to enhancing health care access and affordability for all Americans. By taking decisive action against inadequate insurance plans, addressing unjust medical billing practices, and tackling exorbitant costs, significant strides can be made towards achieving these goals.
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