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President Joe Biden will reveal his budget and outline his strategy in an address in Philadelphia on Thursday, per the White House.
The White House announced US President Joe Biden would propose raising the Medicare tax on high incomes and negotiating medication prices to make the government health insurance program profitable until at least 2050 in his budget plan this week.
The White House stated Tuesday that the tax hike from 3.8 percent to 5 percent on earned and unearned income over $400,000 is part of a package of recommendations to prolong Medicare's Hospital Insurance (HI) Trust Fund's viability by at least 25 years, according to Reuters.
According to the information sheet, it would expand Medicare's ability to haggle over medication pricing and bring new treatments into negotiation sooner. Also, it would include private health insurance in the law's provision requiring drug firms to reimburse Medicare if their price increases exceed inflation.
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Republicans Won't Likely Support Joe Biden's Medicare Proposal
Medicare recipients' out-of-pocket expenses would be reduced by the plan's $2 monthly limit on the cost of generic medications used to treat conditions including hypertension and high cholesterol, per CNN.
It would also eliminate out-of-pocket expenditures for three visits each year and require Medicare parity for mental and physical health.
Moreover, Medicare would be obligated to pay for additional service providers, including peer support workers, trained addiction counselors, and specific digital apps and platforms.
President Joe Biden will reveal his budget and outline his strategy in an address in Philadelphia on Thursday.
However, Republican support for the idea seems improbable, per The New York Times. They have pushed to abolish the Inflation Reduction Act, including the drug agreements, which some party members think would hinder pharmaceutical innovation. In addition, they have worked to reverse Joe Biden efforts to raise taxes on companies and the wealthy.
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