Biden launches a new push to limit health care costs hoping to show he can save money for families

President Joe Biden unveiled a new series of initiatives aimed at curbing health care costs. These measures include cracking down on fraudulent insurance plans, providing guidance to prevent surprise medical bills, and addressing medical debt associated with credit cards.

Biden’s announcement builds upon existing efforts to limit health care expenses. The Department of Health and Human Services has released new estimates indicating that around 18.7 million older adults and Medicare beneficiaries will save approximately $400 per year on prescription drugs by 2025. This is due to the president’s implementation of a cap on out-of-pocket spending as part of the Inflation Reduction Act passed last year.

As President Biden gears up for his 2024 reelection campaign, he recognizes the concerns surrounding inflation among voters. Consequently, he has placed significant emphasis on policies that assist families in managing their expenses. Additionally, his administration has introduced various government incentives to encourage private sector development in areas such as electric vehicles, clean energy, and advanced computer chips.

In other news, an Amsterdam court has approved a plan to reduce flights at the busy Schiphol Airport, countries have agreed to reduce shipping emissions (although not sufficiently to meet warming limits), and Chinese cities have opened air raid shelters to provide relief from extreme temperatures that have led to deaths. Furthermore, 15 individuals were killed in an attack on a village in Myanmar, with the military claiming that pro-democracy fighters targeted civilians.

Republican lawmakers have criticized Biden’s policies, arguing that they have contributed to increased prices, which negatively impact families’ well-being.

To address these concerns, the Biden administration intends to restrict what it deems as “junk” insurance plans. These plans include short-term policies that may deny basic coverage to individuals transitioning between employers and in need of temporary health care coverage.

Neera Tanden, Director of the White House Domestic Policy Council, highlighted the case of a Montana man who received a $43,000 health care bill because his insurer considered his cancer a pre-existing condition. Tanden referred to such insurance as “junk” and stated that a rule would be proposed to crack down on these plans.

President Biden also announced new guidance on medical billing, which stems from the No Surprises Act passed in 2020. This guidance aims to limit the ability of insurers working with hospitals to claim that provided care was out-of-network, resulting in higher costs for customers. Health plans will also be required to disclose facility fees that often appear unexpectedly on medical bills and contribute to additional expenses.

Tanden criticized the practice, stating that it amounts to gaming the system, which is not permissible.

Additionally, the Consumer Financial Protection Bureau and Treasury Department are seeking information on third-party credit cards and loans specifically utilized for health care payments. The high costs and interest charges associated with these financial products can discourage individuals from seeking necessary medical treatment.

Finally, President Biden intends to highlight previous efforts to reduce health care expenses, including a plan enabling Medicare to negotiate lower prescription drug prices and implementing a $35 monthly cap on insulin costs for Medicare Part B beneficiaries.

Frequently Asked Questions (FAQs) about health care costs

More about health care costs

• White House Fact Sheet: President Biden’s Plan to Lower Health Care Costs for All Americans
• Department of Health and Human Services: Inflation Reduction Act
• Consumer Financial Protection Bureau: Protecting Consumers from Medical Debt
• Treasury Department: Seeking Information on Third-Party Credit Cards and Loans for Health Care