BY JOSH BOAK
A new set of initiatives was unveiled by President Joe Biden on Friday to reduce health care costs: a crackdown on what he called junk insurance plans that exploit consumers and play them as suckers, new guidance on preventing unexpected medical bills, and an effort to reduce credit card-related medical debt.
According to new estimates released by the Department of Health and Human Services, 18.7 million older adults and Medicare beneficiaries will save $400 per year in prescription drug costs as a result of the president’s Inflation Reduction Act of last year, which caps out-of-pocket spending. Biden builds on previous initiatives to limit health care costs.
With inflation remaining a major concern for voters as he prepares for his reelection campaign in 2024, the Democratic president has emphasized his policies aimed at helping families manage their expenses, as well as government incentives aimed at encouraging the development of electric vehicles, clean energy, and advanced computer chips by the private sector.
Republican lawmakers say Biden’s policies have led to higher prices that hurt families’ well-being.
According to Biden, his administration is targeting “junk” insurance plans, such as short-term policies that can deny basic health care coverage to people transitioning between employers.
A new proposal aims to close loopholes that allow insurers to discriminate based on pre-existing conditions and market coverage that provides little or no coverage to consumers.
In America, fairness is expected, Biden said. “I don’t know anyone who likes being perceived as a sucker.”
During the White House event to highlight the initiative, Biden invited Cory Dowd to share his story. Following his Peace Corps service in Ghana in 2019, Dowd returned stateside with a high-deductible health care plan and was able to get on a student health plan before starting graduate school. If a medical emergency occurred, he thought the plan would protect him.
Just weeks before he started school, he had emergency surgery to remove his appendix. Months later, the hospital called to tell him his insurer would only cover a small portion of his bill, and he would have to pay over $37,000 out of pocket.
It took a toll on Dowd’s self-esteem and identity. “I’ve always considered myself a responsible person. But this really took a toll on my self-esteem and my identity,” Dowd said.
According to Biden, the No Surprises Act of 2020 will also lead to new guidance on medical billing. As a result of the guidance, insurers that contract with hospitals would be restricted from making claims that provided care is not in network and charging customers more. Furthermore, health plans would have to disclose facility fees that are increasingly being charged to patients and that can appear on medical bills as unexpected charges.
“That’s not health insurance,” Biden told the crowd. “That’s a scam that has to be stopped.”
Information about third-party credit cards and loans specifically used to pay for health care is also being sought by the Consumer Financial Protection Bureau and Treasury Department. It is possible for people in need of treatment to be discouraged from seeking treatment because of the higher costs and interest charges.
In his remarks, the president also mentioned past efforts to reduce health care costs, including a plan that allows Medicare to negotiate lower prescription drug prices and a $35 monthly price cap on insulin.
