Biden Unveiled New Campaign to Reduce Healthcare Expenses

President Joe Biden announced his plan for healthcare cost-cutting measures on July 7 as a critical component of his "Bidenomics" plan.

The announcement banned phony insurance plans, made new recommendations to minimize unexpected medical expenses, and created an endeavor to lessen medical debt associated with credit cards.

The Department of Health and Human Services recently released new estimates showing that 18.7 million older adults and other Medicare beneficiaries will save an estimated $400 per year in prescription drug costs in 2025 due to the president capping out-of-pocket spending as part of last year's Inflation Reduction Act. Biden's remarks will build on previous initiatives to limit healthcare costs.

The 'American Dream' seems to live on nowadays based on the proportional rate between inflation and the further expansion of the Medicare policies.

Republican legislators have criticized Biden's policies, claiming they have led to rising costs detrimental to families' well-being. The Biden administration wants to restrict "junk" insurance plans, such as short-term contracts that might exclude individuals from basic coverage as they change jobs and still require temporary health insurance.

Director of the White House Domestic Policy Council Neera Tanden told the story of a Montanan man charged $43,000 in medical expenses because his insurer claimed his cancer was a pre-existing condition.

"That's not real insurance — that's junk insurance," says Tanden. "We will propose a rule to crack down on these plans."

The president also introduced the No Surprises Act of 2020's new medical billing regulations. The guidelines would restrict insurers' ability to contract with hospitals to argue that their networks did not cover the service they delivered and charge their clients extra.

Additionally, facility fees that are increasingly being levied to consumers and may show up as an unanticipated expense on a medical bill must be disclosed by health plans.

The Biden-Harris Administration is taking an important next step to protect consumers from surprise medical bills by issuing guidance to clarify that payers cannot use loopholes to avoid surprising billing protections.

- The White House

The Treasury Department and the Consumer Financial Protection Bureau also seek information on third-party credit cards and loans explicitly intended to finance medical expenses. People who require treatment may be discouraged from obtaining therapy due to the higher costs and interest rates.

In conclusion, the president is anticipated to emphasize prior initiatives to slash healthcare costs, such as a proposal that would have allowed Medicare to bargain for cheaper pricing on prescription pharmaceuticals and a $35 monthly price ceiling on insulin for Medicare Part B beneficiaries.