July 7 (UPI) — President Joe Biden unveiled a set of executive actions that aim to tackle surprise billing by health insurers, reduce medical debt, and eliminate hidden fees.
The White House released a statement, mentioning that the administration plans to provide guidance on these proposed policies to combat predatory insurance policies and unexpected medical bills.
The proposed rules also target a federal loophole that allows companies to sell inadequate insurance products to consumers, often resulting in little or no coverage.
Biden’s directive seeks to enforce full disclosure by insurers regarding the limitations of short-term health insurance plans that frequently catch families off-guard with substantial medical expenses.
The White House stated, “New guidance will help prevent providers from bypassing surprise billing regulations using creative contractual loopholes that still leave consumers with unforeseen costs.”
Furthermore, the plan includes measures to safeguard individuals from dubious insurance products that have burdened them with unfair medical debt through loopholes in the Affordable Care Act.
Biden is instructing federal agencies to collaborate in investigating potential violations of the law by healthcare providers and third parties who encourage the purchase of inadequate insurance products.
The effort will also focus on tackling medical credit cards and loans, which often result in higher costs without consumers fully comprehending the risks involved, according to the White House.
Biden is also calling for stricter limits on bank fees for bounced checks and overdrafts, estimated to save consumers over $5 billion annually.
Under the proposed regulations, airlines would be required to disclose all fees upfront and eliminate additional charges for family seating. Additionally, the administration aims to eliminate hidden fees associated with concert and sports tickets.
Meanwhile, the White House attributed ambiguous policies under the previous administration for enabling insurance companies to deny coverage to individuals with pre-existing conditions.
Biden aims to close the loophole that has allowed insurers to categorize certain health facilities as “out-of-network” despite being technically “in-network,” resulting in higher costs for patients during hospital visits.
The White House emphasized, “The administration today is making clear this is not allowed under federal law. Healthcare services provided by these providers are either out-of-network and subject to the surprise billing protections, or they are in-network and subject to the ACA’s annual limitation on cost-sharing, further protecting consumers from excessive out-of-pocket costs.”
A report from the Department of Health and Human Services, set to be released on Friday, is expected to demonstrate that nearly 19 million seniors and other Part D beneficiaries could save $400 per year on prescription drugs through Biden’s $2,000 out-of-pocket cap.
Last week, the Centers for Medicare and Medicaid Services released revised guidelines as part of a plan to lower prescription drug prices for seniors starting in September. Additionally, the $35 monthly cap on insulin for Medicare Part B beneficiaries has gone into effect, resulting in hundreds of dollars in monthly savings for 1.5 million diabetics.
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