WASHINGTON, D.C. – In August, U.S. Rep. Blake Moore (R-UT) introduced bipartisan legislation to boost health care savings and improve medical treatment affordability for American families.
Despite boasts from the Biden-Harris administration about reducing Medicare costs for millions of Americans, Moore says that the one of the biggest issues that he hears about from Utah patients, providers and employers is the skyrocketing cost of health benefits.
“The Health Out-of-Pocket Expense (HOPE) Act is a step in the right direction in making health care more affordable for Utahns and Americans across the country,” according to Moore.
That bipartisan proposal by Moore and other congressmen would create a tax-advantaged account to enable Americans with most types of health insurance to save for medical expenses through both individual and employer contributions.
Staffers on Capitol Hill report that health care costs continue to climb, often outpacing the national rate of inflation and the average annual growth in the gross domestic product.
Two years ago, Capitol Hill Democrats passed the so-called Inflation Reduction Act (IRA) in one of the final significant legislative victories when they still retained majorities in both houses of Congress, with Vice President Kamala Harris casting the tie-breaking vote.
At that time, Democrats hailed the IRA as making the largest historic federal investment in the U.S. economy, energy security and climate change policies.
In August, the Biden administration announced that it had taken on Big Pharma and won, promising that millions of senior and others on Medicare would see their costs fall for some of the most common and expensive prescriptions that treat heart disease, diabetes, blood clots and other ailments.
The projected savings for American taxpayers starting in 2026 are estimated at $6 billion on prescription drug costs, saving Medicare recipients $1.5 billion, according to White House analysts.
But political action committees representing seniors don’t see it that way.
The Seniors Across America PAC argues that study after study have shown that the Biden-Harris effort is already having devastating consequences for seniors enrolled in Medicare Part D programs, including access restrictions and limits on drug choices.
The Commitment for Senior PAC goes so far as to call the IRA “a raid on Medicare.”
“The Inflation Reduction Act (IRA) raided an estimated $260 billion in projected Medicare drug savings to pay for liberals special interests handouts,” a recent Commitment to Seniors statement reported.
Those so-called handout included costly tax subsides to electric vehicle buyers and big health insurance corporations.
Despite being hyped as a means to lower health care costs, the PAC statement says that Medicare cost have surged by 20 percent over the past two years; the number of Medicare optional plans have actually dropped; and access restrictions to critical treatment procedure have increased.
Experts at the Commitment to Seniors PAC say that the IRA has failed to deliver any meaningful relief from inflation or consumer prices. Instead, Washington bureaucrats are using Medicare as a piggy bank to fund wasteful green energy programs.
Under the HOPE Act proposed by Moore and congressional colleagues, however, a saving account similar to a ROTH account could be created, providing investment and saving options to protect individuals and families from unexpected illnesses or injuries.
Members of Moore’s staff explain that anyone with qualifying coverage – including commercial insurance, Medicare, Medicaid, the Indian Health Service or other coverage – would be eligible to contribute to a HOPE account. An individual’s employer could also make contributions.
While contributions to the HOPE account would not be tax deductible, the account’s earnings would be tax-free if the funds are used for qualified medical expenses.
Under the proposed HOPE Act, the maximum annual contribution from all sources to a HOPE account would be $4,000 for an individual or for married couples with separate accounts.
For those with family coverage, the maximum annual contribution would be $8,000.
Joining Moore in sponsoring the HOPE Act are Representatives Jimmy Panetta (D-CA), Brian Fitzpatrick (R-PA), Brad Schneider (D-IL), Adrian Smith (R-NE) and Raul Ruiz (D-CA).
Moore adds that he is proud to introduce the HOPE Act as a way to help families plan and save for medical expenses.