Democrats in Congress have revived an effort to protect Medicare enrollees from high medical costs.
Lawmakers' new Choose Medicare Act bill would cap Medicare enrollees' out-of-pocket costs at $6,700 per year starting in 2026. The bill would also create a Medicare Part E plan open to people of any age.
Today, people who sign up for original Medicare without buying supplemental coverage face unlimited exposure to "cost-sharing" bills.
Sen. Jeff Merkley, D-Ore., returned as the bill sponsor in the Senate. Rep. Jimmy Gomez, D-Calif., is back as the sponsor in the House.
What it means: If the bill passes, it could reduce clients' need for either Medicare Advantage plans or Medicare supplement insurance policies.
The bill: The Medicare Part A program pays for inpatient hospital bills. The Medicare Part B program pays for outpatient care and physician services.
More than 75% of the enrollees use Medicare Advantage plans, Medicare supplement insurance or programs aimed at low-income people to handle Medicare cost-sharing bills.
Medicare enrollees who have no supplemental coverage can end up owning tens of thousands or more on deductibles, coinsurance amounts and co-payments.
Johns Hopkins researchers found in 2017 that 10% of Medicare enrollees with no supplemental coverage who have cancer end up spending more than $17,866, or more than 63% of their total annual household income, on out-of-pocket medical costs.
