Biden announces plans to lower healthcare costs, tackle “junk” insurance, stop surprise bills, and address medical debt.
President Biden emphasizes fairness, protecting consumers from exploitative insurance plans (Photo: ABC News)
Biden Unveils Initiatives to Lower Health Care Costs and Protect Consumers from “Junk” Insurance Plans
President Joe Biden recently announced a slew of new initiatives aimed at cutting health care costs and safeguarding consumers. These initiatives include cracking down on what he referred to as “junk” insurance plans, providing guidance to prevent surprise medical bills, and addressing medical debt tied to credit cards. “Junk insurance” refers to health insurance policies that provide limited coverage and may not meet regulatory agencies’ basic standards. The term “junk insurance” refers to the insufficiency and lack of complete coverage provided by such plans.
Building upon previous efforts, Biden’s administration aims to limit health care costs. According to the Department of Health and Human Services, roughly 18.7 million older people and other Medicare beneficiaries will save $400 per year on prescription medication expenses by 2025. This savings is a result of the president’s cap on out-of-pocket spending, implemented as part of the Inflation Reduction Act passed last year.
With his reelection campaign in 2024 in mind and concerns about inflation, President Biden has emphasized his measures to help families control their spending and avoid being scammed by “junk” insurance. He has also focused on government incentives to encourage the private sector’s development of electric vehicles, clean energy, and advanced computer chips. However, Republican lawmakers have criticized these policies, arguing that they have contributed to higher prices and negatively impacted families’ well-being.
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President Biden emphasizes fairness, protecting consumers from exploitative insurance plans
Regarding health care, Biden’s new proposed rules aim to address the shortcomings of “junk” insurance plans, which often lack adequate coverage and discriminate against individuals with pre-existing conditions. The president stressed the importance of fairness and ensuring that consumers are not taken advantage of by such plans.
During the announcement, Biden shared the story of Cory Dowd, who faced exorbitant medical bills despite having “junk” insurance coverage. This anecdote exemplified the need for improved protections and regulations to prevent similar situations from occurring. In addition to tackling “junk” insurance, Biden also unveiled guidance on medical billing to limit surprise costs and improve transparency. The guidance seeks to prevent insurers from claiming that care provided was out-of-network, resulting in higher out-of-pocket expenses for customers. Health plans would also be required to disclose facility fees, which can often catch patients off guard as unexpected charges.
Furthermore, the Consumer Financial Protection Bureau and Treasury Department are examining third-party credit cards and loans specifically used for health care expenses. These financial instruments can come with high costs and interest charges, discouraging individuals from seeking necessary medical treatment. President Biden also highlighted previous efforts to lower health care costs, including Medicare’s ability to negotiate lower drug prices and capping the cost of insulin at $35 per month for individuals enrolled in Medicare Part B. These measures aim to alleviate the financial burden, eradicate “junk” insurance, and make essential health care more affordable. The newly announced initiatives demonstrate the administration’s commitment to making health care more accessible, affordable, and fair for all Americans.
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