Yahoo Finance 6 Things That Could Happen to Medicare if Biden Wins the 2024 Election
Since its inception in 1965, under the administration of then-President Lyndon B. Johnson, Medicare has emerged as a medical lifeline for people aged 65 and older, along with people who may be young and have disabilities. According to the Center for Medicare Advocacy, nearly 66 million people were enrolled in Medicare, as of March 2023.
Medicare isn’t in as dire a spot as, say, Social Security, but the program is facing financial pressure due to higher healthcare costs and an aging population. KFF reported that based on current projections from the Medicare Board of Trustees in their 2024 report, the HI (hospital insurance) trust fund is projected to be depleted in 2036.
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What is the fate of Medicare? More specifically, what could happen to the program under the leadership of Biden, should he win a second consecutive term?
Josh Thompson, CEO at Impact Health USA, spoke with GOBankingRates about how a second term for Biden could change Medicare.
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Efforts To Expand Access and Affordability
The Biden administration has been aggressive in designing policies aimed at expanding the accessibility and affordability of Medicare. It is likely that President Biden would continue these efforts with a second term.
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Uncontrolled Spending and Increased Bureaucracy
A perhaps unwanted side effect of Biden’s push to expand Medicare benefits, such as adding dental, vision and hearing coverage, could lead to “uncontrolled spending,” Thompson said. “This expansion may result in increased bureaucracy, making the system more inefficient and less responsive to patients’ needs.”
Drug Price Negotiation
In part of their efforts to expand access and widen coverage, the Biden administration wants Medicare to negotiate drug prices. If Biden wins again in November, he will likely continue doubling down on this. It’s a move that, in Thompson’s opinion, could stifle innovation in the pharmaceutical industry.
“Lower revenues might lead to reduced investment in research and development, ultimately limiting the availability of new and effective medications for seniors,” Thompson said.
Lowering the Eligibility Age
Biden has long been talking about wanting to lower the Medicare eligibility age to 60 — but has been met with substantial pushback. He could continue to vie for the age to be lowered in a second term.
Lowering the age could, Thompson pointed out, “strain the program’s finances, potentially leading to higher taxes and reduced benefits. This move could also create longer wait times and reduced access to care for current beneficiaries.”
Ease of Use and Enrollment
Biden will likely strive to improve ease of use and enrollment in Medicare. But this may not be as big a fix as what is needed.
“Biden’s efforts to simplify the enrollment process might not address the fundamental issues within Medicare,” Thompson said. “Simplified interfaces won’t fix the inherent inefficiencies and could mislead beneficiaries about the true state of their coverage.”
Tax Implications and Funding
Arguably the biggest financial issue here with Biden’s sure-to-be-continued initiatives to strengthen and expand Medicare is the fact that it will call for an increase in program funding.
“Increased funding for Medicare through higher taxes on the wealthy could have broader economic implications,” Thompson said. “These tax hikes might discourage investment and economic growth, ultimately affecting the middle and lower classes.”
Editor’s note on election coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. For more coverage on this topic, please check out What Could Happen to Medicare If Trump Wins?
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This article originally appeared on GOBankingRates.com: 6 Things That Could Happen to Medicare if Biden Wins the 2024 Election
