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July 7 (UPI) — President Joe Biden presented a set of new executive actions on Friday to address surprise billing by health insurers, reduce medical debt, and eliminate hidden fees burdening consumers.
Biden highlighted the need for these policies to crack down on fraudulent insurance policies and unexpected medical bills that impact millions of Americans every month, while undermining federal consumer protections.
The proposed rules would also aim to close a federal loophole that allows companies to deceive taxpayers into purchasing inadequate or nonexistent insurance products, according to the White House.
“Fairness is something we expect in America,” Biden stated as he announced the new policy. “I don’t know anyone who likes being taken advantage of or made to look like a fool.”
Under Biden’s directive, insurers would be required to provide complete disclosure regarding the limitations of short-term health insurance plans, which often result in families facing significant unexpected medical expenses.
“These junk fees cost hundreds of dollars per month, totaling tens of billions of dollars, straining family budgets and making it harder for people to meet their financial obligations,” Biden explained. “While these fees may not impact the extremely wealthy, they matter to working families and the homes I grew up in.”
The president enumerated various industries his administration had targeted to address junk fees, including banking, hotels, concerts, tickets, airlines, and the internet.
“Today, I am pleased to announce that we are making progress in the healthcare sector as well,” he added.
The plan includes measures to protect patients from dubious insurance products that result in unfair medical debts due to a loophole in the Affordable Care Act.
“Not being able to take care of your family is one of the most significant consequences a person can face,” Biden emphasized.
Biden also ordered federal agencies to collaborate in investigating potential violations of the law by healthcare providers and other third parties that encourage consumers to enroll in junk insurance products.
The effort will also focus on medical credit cards and loans, which often lead to higher costs without consumers fully understanding the risks, according to the White House.
In addition, Biden called for new restrictions on bank fees for bounced checks and account overdrafts, estimated to save consumers over $5 billion annually.
Under the new rules, airlines would be required to disclose all fees upfront and eliminate family seating fees. Biden also seeks to eliminate hidden junk fees for concert and sports tickets.
Meanwhile, the White House attributed ambiguous policies under the previous administration for allowing insurance companies to deny coverage to individuals with pre-existing conditions.
Biden aims to close the loophole that permits insurers to take advantage of the “in-network” designation by categorizing certain health facilities as “out-of-network,” thereby exposing patients to higher costs for hospital visits.
“The administration is making it clear today that this is not allowed under federal law,” the White House emphasized. “Healthcare services provided by these providers are either out-of-network and subject to surprise billing protections or in-network and subject to the ACA’s annual limitation on cost-sharing, further protecting consumers from excessive out-of-pocket expenses.”
A report from the Department of Health and Human Services, expected to be released on Friday, estimates that nearly 19 million seniors and other Part D beneficiaries would save $400 per year on prescription drugs under Biden’s proposed $2,000 out-of-pocket cap.
Last week, the Centers for Medicare and Medicaid Services issued revised guidance as part of a plan to reduce prescription drug prices for seniors, which will take effect in September.
The $35 monthly cap on insulin for Medicare Part B beneficiaries has also been implemented, resulting in savings of hundreds of dollars per month for 1.5 million diabetics.
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