White House Measures to Limit Health Care Costs

White House Measures to Limit Health Care Costs

New Federal Initiatives Aim to Save Americans Money on Health Care Costs

health care reform

President Joe Biden has unveiled new federal initiatives aimed at reducing health care costs for Americans. These initiatives target surprise medical bills, scam insurance, and third-party credit cards and loans with high interest charges. In addition to these measures, there will be a crackdown on short-term “junk” insurance plans, which often deny coverage for basic medical treatments. The goal is to ensure that Americans have access to quality health care without being burdened by exorbitant bills.

Limiting “Junk” Insurance Plans

Junk insurance plans are short-term policies that people sometimes rely on during transitional periods, such as switching jobs or facing gaps in coverage. These plans have been a cause for concern due to their limited coverage and the potential for denying claims for preexisting conditions. Neera Tanden, director of the White House Domestic Policy Council, shared the case of a Montana man who was charged $43,000 when his cancer was deemed a preexisting condition by one of these insurance providers. These plans provide inadequate protection and can leave individuals with massive medical bills. The new federal initiatives aim to crack down on these plans and ensure that healthcare coverage is comprehensive and effective.

Addressing Third-Party Credit Cards and Loans

Another area of focus for the federal government is third-party credit cards and loans specifically used for health care expenses. Both the Consumer Financial Protection Bureau and the U.S. Treasury Department are examining these financial methods, which come with high interest charges that can deter policyholders from seeking necessary medical care. By understanding and regulating these financial practices, the government aims to alleviate the financial burden on individuals and remove barriers to accessing essential healthcare services.

Enhancements to the No Surprises Act

Building upon the 2020 No Surprises Act, President Biden is offering new guidelines that will require health plans to disclose facility fees and limit the ability of insurers to claim care wasn’t in network. This practice of claiming out-of-network care can leave patients with a larger bill for medical treatment. The president and his administration are determined to eliminate loopholes and ensure that patients are not financially burdened due to insurers’ tactics. By closing these gaps, the government aims to protect patients’ rights and make health care costs more transparent and manageable.

Saving Older Adults and Medicare Beneficiaries Money

President Biden also plans to highlight how his previous initiatives have helped Americans save money, particularly amidst rising inflation. The Inflation Reduction Act, implemented last year, has capped out-of-pocket spending and is set to save an estimated $400 per year on prescription drug costs for 18.7 million older adults and other Medicare beneficiaries by 2025. This crucial relief ensures that vulnerable populations are not overwhelmed by the rising costs of essential medication and can access the treatments they need without sacrificing their financial stability.


President Biden’s new federal initiatives signal a determined effort to address the challenges Americans face when it comes to health care costs. By targeting junk insurance plans, third-party credit cards and loans, and strengthening regulations around out-of-network care, the government aims to protect individuals from unexpected medical bills and financial hardships. Additionally, the measures undertaken to reduce prescription drug costs for older adults and Medicare beneficiaries prioritize the well-being of vulnerable populations. These initiatives provide hope for a healthier and more affordable health care system, where quality care is accessible and financial burdens minimized.