BY JOSH BOAK
Joe Biden, the president, announced a new set of initiatives on Friday that aims to lower health care costs. These include a crackdown against what he calls junk insurance plans, which exploit and trick consumers, as well as new guidelines on how to avoid unexpected medical expenses and reducing credit card debt related to medical debt.
New estimates from the Department of Health and Human Services show that 18.7 millions older adults and Medicare recipients will be able to save $400 per annum on prescription drugs as a direct result of President Obama’s Inflation Reduction Act of 2013, which limits out-of pocket spending. Biden continues to build on past initiatives that have aimed at limiting health care costs.
As he prepared for his 2024 reelection bid, President Obama has stressed his efforts to help families better manage their finances, along with government incentives that encourage the development of advanced computer chips, electric cars, and clean energy by private companies.
Republican legislators claim that Biden’s policies are responsible for higher prices, which hurt the well-being of families.
Biden said that his administration targets “junk insurance” plans such as short term policies which can deny people basic healthcare coverage when they change employers.
The new proposal is designed to eliminate loopholes which allow insurers discriminate against consumers based on their pre-existing medical conditions or market coverage, which provides very little coverage.
Biden stated that fairness in America is expected. I don’t think anyone likes to be perceived as a fool.
Biden asked Cory Dowd, who served in the Peace Corps for Ghana from 2019 to tell his story at the White House. Dowd, who served in Ghana with the Peace Corps in 2019 returned to the United States and obtained a health insurance plan that had a high deductible. He was also able enroll in a student plan prior to starting graduate studies. He thought that if a medical crisis occurred, the plan would cover him.
He had an emergency appendectomy just weeks before starting school. The hospital called him months later to let him know that his insurance would cover only a portion of the bill and he’d have to pay $37,000 himself.
Dowd suffered a loss of self-esteem. I’ve always thought of myself as a person who is responsible. Dowd stated that this had a negative impact on her self-esteem.
Biden said that the No Surprises Act of 2020 would also result in new guidelines on medical billing. The guidance will prevent insurers who contract with hospitals from claiming that the care they provide isn’t in their network, and charging more to customers. Health plans will also have to reveal facility fees, which are being increasingly charged to patients. These charges can be found on their medical bills.
Biden said to the crowd, “This is not health insurance.” It’s time to stop this scam.
The Consumer Financial Protection Bureau, along with the Treasury Department, are also looking for information about credit cards or loans from third parties that were specifically used to fund health care. The higher interest rates and costs can discourage people from getting treatment.
The president mentioned in his remarks past attempts to lower health care costs. This included a Medicare plan which allows it to negotiate a cheaper price for prescription drugs and a monthly cap of $35 on insulin.
