Medicare Update: Major Change to Save Millions Money Gains Support
Summary
Congress is considering a bill called the Medicare Cost Cap Act of 2026, which would limit how much people pay out of their own pockets for Medicare hospital and outpatient care to $5,000 a year starting in 2028. The bill aims to protect millions of Americans on traditional Medicare from very high medical bills by capping yearly costs for deductibles, copayments, and coinsurance.Key Facts
- The bill would cap out-of-pocket costs for Medicare Part A (hospital) and Part B (outpatient) services at $5,000 annually beginning in 2028.
- About 34.3 million Americans are enrolled in original Medicare and would be affected.
- Traditional Medicare currently has no annual limit on out-of-pocket costs, unlike Medicare Advantage and most private insurance.
- Once a beneficiary hits the $5,000 cap, Medicare would cover all other covered costs for the rest of the year.
- The $5,000 limit would increase over time based on Medicare spending growth.
- AARP supports the bill, saying it protects seniors and people with disabilities from large medical bills.
- Some experts warn the bill might encourage privatization by making traditional Medicare more like Medicare Advantage plans.
- Researchers estimate beneficiaries could save an average of $1,255 per year if the bill passes.
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