Medicare – What Can We Expect Under the Biden Administration

While it’s a new year with a renewed hope for a return to normalcy, we also have a new President with new power, given that the Democrats hold the majority in both the House and the Senate. The big question is, what impact will this administration and control of both Houses of Congress have on Medicare?

As you might remember, one of the big discussion issues among the Democratic Presidential hopefuls had to do with healthcare. Some of the more progressive candidates pushed for a single payer, government-controlled healthcare system. The more moderate candidates, President Biden being one of them, campaigned for an expansion of Affordable Care Act (sometimes called Obamacare) and some cuts to some parts of Medicare and an expansion of benefits to others.

One of the changes to Medicare that President Biden has talked about is adding a public health insurance option to the healthcare choices for those under 65. It would be administered by the traditional Medicare program. It is opposed by hospitals and many doctors because it would likely fix many of the prices of healthcare at or below the already low Medicare prices. This would especially impact rural hospitals since many are already teetering on insolvency. With the small majorities in both houses this approach will be one of the harder ones to get passed.

The President has also proposed that the Medicare age be lowered to 60. This is just another way to open the way for more people to rely on the government for their healthcare; some say it is merely a steppingstone to a single payer system. It just doesn’t seem logical to lower the Medicare age, putting more pressure on an already financially strapped program, when people are staying healthier longer. This will also be difficult to get done.

Drug prices is another area that President Biden has promised change. This is one area where he and former President Trump were most alike. He also wants to use methods like using foreign prices to set our drug prices and allowing the unregulated importation of drugs. I’ve discussed in further detail these and other approaches in earlier blogs, here and here. There is one place where President Biden differs from the former President on drug pricing. President Biden wants to allow the government to negotiate the drug prices in Medicare Part D. Now this sounds like something that every free-market advocate would embrace, but what it really means is the government would merely be setting the prices and would not save much money according to the government’s own non-partisan accounting office, the Congressional Budget Office.

One area that might get some renewed attention is a change that could help older Americans immensely. That change would put a cap on a Medicare beneficiaries yearly out-of-pocket prescription drug costs. This change would help those who are the sickest amongst us and who are often in no position to afford huge drug costs. I hope that a new bipartisan effort to consider this needed change will be one of the positive things that this administration champions. 

It will be interesting to see if President Biden uses the Executive Order route favored by President Obama and President Trump or the legislative route to enact his administration’s policies. I have said many times that our Representatives on Capitol Hill need to be involved in issues that have such a profound effect on our lives. Whatever happens, we will help you stay informed on any proposed changes to your healthcare and continue to be a conduit for your voices to those on Capitol Hill.

A reminder, tomorrow we will hold another virtual town hall. We will be focusing on our country’s COVID-19 vaccination effort. The information below will discuss the town hall in more detail and how you can register for the event.

Best, Thair

Medicare Today Town Hall
Wednesday, February 17
2:00 p.m. ET

Guest Speakers
Thair Phillips
former President and CEO of RetireSafe
And
Janet McUlsky

COVID-19 Vaccine Education and Equity Project
They will discuss:

• The latest information on COVID-19 vaccines
• The impact of vaccination uptake
• Efforts to ensure equitable access to authorized
  and approved vaccines

Register Here

After registering, you will receive a confirmation
email containing information on joining the Town Hall.