Congressional leaders on June 25, 2026 filed a bill to cap traditional Medicare annual out-of-pocket expenses.
- HANM
- 1 day ago
- 1 min read
Lowers out-of-pocket costs to $5000, shielding more than half of all people
with Medicare from catastrophic costs over the next decade, while
lowering skyrocketing Medigap premiums.
Guarantees all people with Medicare are protected, no matter what coverage
option they choose, leveling the playing field between Traditional Medicare and
private plans such as Medicare Advantage which does have an annual cap.
Shields seniors who rely almost exclusively on their Social Security benefits
from rising premiums and cost-sharing through improvements to Medicare
Savings Programs and the Low-income Subsidy that eliminate asset test
and raise eligibility floor to 200%, aligning across all programs
.
Over the next ten years, more than 52% of beneficiaries are expected to
exceed the $5,000 cap at least once. Additionally, a $5,000 cap is projected to
reduce average beneficiary spending by $1,024 per year.