(NewsNation) — President Joe Biden unveiled a set of new initiatives Friday aimed at limiting health care costs, including a crackdown on “junk insurance” and new guidance to prevent surprise medical bills.
“Too many nights, too many Americans lie in bed staring at the ceiling worrying what will happen if their spouse gets seriously ill,” Biden said Friday.
The administration plans to limit what it calls “junk” insurance by closing loopholes that allow companies to offer “misleading insurance products.” The White House says some of those products, which often come in the form of short-term plans, can “discriminate based on pre-existing conditions” and “trick” consumers into buying insurance that provides “little or no coverage.”
If finalized, the new rules would limit “short-term” insurance plans to a maximum of four months.
Biden also announced new guidance to avoid surprise medical bills. The guidance limits the ability of insurers that contract with hospitals to claim care was not provided in-network.
Going forward, health plans would also need to make consumers aware of facility fees that they may be charged for care provided outside of hospitals.
The latest actions build on the administration’s previous efforts to curb medical costs. The Department of Health and Human Services (HHS) recently released new estimates showing 18.7 million Medicare beneficiaries will save on average $400 per year in prescription drug costs in 2025 as a result of the Inflation Reduction Act.
The initiatives Friday are part of the president’s “Bidenomics” agenda. Although, it remains to be seen whether Americans are buying into that plan. NewsNation polling suggests the vast majority of people remain very concerned about inflation.
The Associated Press and Margot Mather contributed to this report.