By JOSH BOAK (Associated Press)
WASHINGTON (AP) — President Joe Biden on Friday rolled out a brand new set of initiatives to cut back well being care prices: a crackdown on what he known as “junk” insurance coverage that play shoppers as ‘suckers,’ new steering to stop shock medical payments and an effort to cut back medical debt tied to bank cards.
Biden is constructing on earlier initiatives to restrict well being care prices, with the Department of Health and Human Services releasing new estimates displaying 18.7 million older adults and different Medicare beneficiaries will save an estimated $400 per yr in prescription drug prices in 2025 due to the president putting a cap on out-of-pocket spending as a part of final yr’s Inflation Reduction Act.
Gearing up for his 2024 reelection marketing campaign as inflation stays a dominant concern for voters, the Democratic president has emphasised his insurance policies to assist households handle their bills, in addition to a spate of presidency incentives to encourage non-public sector improvement of electrical automobiles, clear power and superior laptop chips.
Republican lawmakers have criticized Biden’s insurance policies by saying they’ve spurred greater costs that damage the well-being of households.
Biden mentioned his administration was taking goal at what he known as “junk” insurance coverage, akin to short-term insurance policies that may deny fundamental protection as folks transition between employers and nonetheless want short-term well being care protection.
The new proposed guidelines goals to shut loopholes that enable insurers to supply merchandise that may discriminate based mostly on pre-existing situations and market to shoppers protection that gives little or no protection.
“In America, it sounds corny, but fairness is something we kind of expect,” Biden mentioned. “And I don’t know anybody who likes to be viewed as having been played for a sucker.”
Biden invited Cory Dowd to inform his story on the White House occasion to highlight the initiative. Dowd in 2019 bought a high-deductible well being care plan when he returned stateside after serving within the Peace Corps in Ghana however earlier than he began graduate faculty and was capable of get on a scholar well being plan. He thought the plan would defend him within the case of a medical emergency.
But simply weeks earlier than he began faculty, he needed to have emergency surgical procedure to take away his appendix. Months later, the hospital known as him to inform him his insurer would solely cowl a small portion of his invoice and that he must pay greater than $37,000 out of pocket.
“For me, there was both a financial and emotional cost,” mentioned Dowd, who added that the insurer relented after information protection about his scenario. “I’ve always considered myself a very responsible person. But this really took a toll on my self-esteem and my identity.”
Biden additionally introduced new steering on medical billing stemming from 2020’s No Surprises Act. The steering would restrict the power of insurers that contract with hospitals to assert supplied care was not in community and have clients pay extra money. Health plans additionally would want to reveal facility charges which can be more and more charged to sufferers and might floor as an surprising value in a medical invoice.
“Folks, that’s not health insurance,” Biden mentioned. “That’s a scam. It has to end.”
The Consumer Financial Protection Bureau and Treasury Department are also looking for info on third-party bank cards and loans which can be particularly used to pay for well being care. The greater prices and curiosity expenses can discourage folks in want of therapy from looking for care.
The president in his remarks additionally highlighted earlier efforts to cut back well being care prices, together with a plan permitting Medicare to barter decrease costs for prescribed drugs and a $35 month-to-month worth cap on insulin for folks in Medicare Part B.
Source: www.bostonherald.com”