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BY JOSH BOAK
Joe Biden announced on Friday a set of new initiatives to help reduce the cost of health care. They include cracking down on junk insurance policies that take advantage and exploit their customers, providing new advice on how to prevent unexpected medical costs, and working to reduce medical credit card debt.
The Department of Health and Human Services has released new estimates that show 18,7 million Medicare and older adults will save $400 a year on their prescription drug costs thanks to the Inflation Reduction Act of 2010, which capped out-ofpocket expenses. Biden is building on his previous efforts to reduce health care cost.
Inflation is a concern that voters will continue to have as they prepare for the 2024 presidential election. The Democratic President has highlighted his policies for helping families budget their money, as well government incentives for encouraging private industry development in the areas of clean energy and computer chips.
Republican lawmakers claim Biden’s policy has led to increased prices which have hurt the families.
Biden’s administration, according to Biden is targeting short-term insurance policies, which deny coverage for basic health care to those who are changing employers.
New proposals aim to fix loopholes in the insurance industry that permit insurers to discriminate on pre-existing condition and provide little to no protection to consumers.
Biden said that in America fairness was expected. “I do not know of anyone who enjoys the perception that they are a sucker.”
Biden, during the White House’s event to promote the initiative invited Cory Dowd share his experience. Dowd was eligible for a low-deductible student health plan after his Peace Corps service to Ghana, in 2019. The plan was supposed to protect him in case of a serious medical problem.
Only weeks before his first day of school, he underwent emergency surgery for the removal of his appendix. A few months later, he was told by the hospital that only a fraction of his medical bill would be covered. He would need to cover over $37,000 of it himself.
Dowd lost her self-esteem, and she became less confident. I have always regarded myself as responsible. Dowd says that the experience had an impact on his self-esteem.
Biden says that No Surprises Act of 2020 is also expected to lead to new medical billing guidelines. Insurers that have contracts with hospitals will be prohibited from charging higher rates for services that are not covered by their networks. In addition, insurers would be required to divulge facility charges that patients are paying more and which can show up on bills.
Biden informed the audience that “that’s not insurance for health.” This is a fraud that must be stopped.
Consumer Financial Protection Bureau (CFPB) and Treasury Department are both interested in information on third-party loans and credit cards specifically for paying health care. People who need treatment may be deterred from seeking it because the costs are higher and there is a high interest rate.
In his remarks the President also mentioned previous efforts to reduce healthcare costs. These included a plan allowing Medicare to negotiate lower prices for prescription drugs, and a price cap of 35 dollars per month on insulin.
